look news india
Ahmedabad: Global economists have raised the risk of recession in the US next year from 15% to 25%, but have said that there are many reasons for recession even after rising unemployment.
Goldman Institute economists said we consider recession risks to be limited. The economy looks good overall, there are no major fiscal imbalances and the Federal Reserve has plenty of room to cut interest rates and can do so quickly if needed.
US jobs data late last week showed new hiring fell sharply in July and unemployment rose to its highest level in nearly three years, raising recession concerns and fears the federal government may wait too long to cut interest rates
Other institutions expect the Fed to cut its benchmark by 25 basis points in September, November and December. In contrast, JPMorgan and Citigroup revised down forecasts that policymakers would cut rates by half a point in September.
Economists said they doubt the labor market is at risk of deteriorating quickly because job openings show demand is solid and there are no obvious shocks that could trigger a recession.