Skip to: Content
Skip to: Site Navigation
Skip to: Search

May 17, 2008 12:45:32 AM CDT

Learn about Newser Points »

Back to the grid

Economists Lean Closer to the R-Word  

Posted Feb 25, 08 7:09 PM CST in Business    Most Covered

(newser) – An panel of US economists leaned closer to predicting recession today after grappling with a slew of scary data, the AP reports. More than half of analysts at the National Association for Business Economics maintained that a downturn is still unlikely, but 45% expected recession in 2008; only a quarter saw a 35% chance of recession in a report last September.

All agreed that the economy will contract through June, with GDP growing at a paltry 1.8%. The group also predicted a second-half rebound due to Washington's $168 billion economic stimulus package and Fed rate cuts. Other NABE forecasts include:

  • The Fed will cut its federal funds rate rate to 2.5%.
  • The Consumer Price Index will climb by 2.5%.
  • Oil will drop to $84 by year's end.
  • Unemployment will rise from 4.6% last year to 5.2%.
Click on the links below to read more about NABE's predictions.

Sources Associated Press, Reuters

open commentscomments (0)

Editor Recommended

Economist says US could suffer huge recession
Banking Times | Feb 25, 08

Economists give gloomy US forecast
Financial Post | Feb 22, 08

Related News

  • Recession Fears Overblown: Economists

    May 14, 08 9:50 AM CDT
    Recession Fears Overblown: Economists A growing number of economists are saying, cautiously, that the US might have pulled back from the brink of recession, the Wall Street Journal reports. The experts credit swift action by the Federal Reserve to lower interest rates and save Bear Stearns in March, and even the ongoing distribution of fiscal-stimulus checks, as catalysts for the detour. More »

  • Dems Push New Aid Package as Job Market Swoons

    Apr 5, 08 9:25 AM CDT
    Dems Push New Aid Package as Job Market Swoons Democrats are calling for another stimulus package to help American workers as unemployment soars, the New York Times reports. Almost 250,000 American jobs have been lost since the beginning of the year—including 80,000 in March—leading one policy expert to say it's time the government switched focus from the housing crisis to the flagging job market. More »

  • US Drops 80,000 Jobs, Biggest Loss in 5 Years

    Apr 4, 08 8:00 AM CDT
    US Drops 80,000 Jobs, Biggest Loss in 5 Years Unemployment surged in March to 5.1%, the worst it’s been since September 2005, reports the Wall Street Journal. The country lost 80,000 non-farm jobs last month after dropping 76,000 jobs in both January and February. The third sharp drop fuels fears that the US has slipped into a recession and may prompt another interest rate cut by the Fed. More »

  • Bernanke: Adjustment Is Mostly Over

    Apr 2, 08 10:24 AM CDT
    Bernanke: Adjustment Is Mostly Over Ben Bernanke for the first time acknowledged the possibility of a US recession, but he also voiced optimism that “much” of the adjustment period was over, the Wall Street Journal reports. His testimony before Congress seemed to suggest an end to aggressive stimulus measures—noting that rates had already been cut “substantially” and inflation was still a “source of concern.” More »

  • Bernanke Looks Impotent as Fed's Fixes Fail

    Mar 17, 08 11:11 AM CDT
    Bernanke Looks Impotent as Fed's Fixes Fail Ben Bernanke has employed virtually every tool in the Federal Reserve's kit to calm markets panicked by the credit crisis, but hasn't scored any more than temporary rallies, Bloomberg reports in a look at the markets' fading faith in the Fed chief—and the Fed itself. "The Fed has been playing the equivalent of Whac-A-Mole,'' says a former Fed vice chairman. More »

Economists Lean Closer to the R-Word
Construction workers carry pipe on a site where new homes are being built Wednesday, Oct. 17, 2007, in Fremont, Calif. Home sales continue to be a weak spot in the economy.   (Associated Press)
Economists Lean Closer to the R-Word
Unsold 2008 G6 sedans sit in a long row at a Pontiac dealership in Littleton, Colo. US automakers have struggled in a souring economy.   (Associated Press)
Economists Lean Closer to the R-Word
A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver. The subprime debacle has hurth the US economy.   (Associated Press)
prev   next
play

Threads (1 of 2)

Tags

US economy  • Federal Reserve  • recession  • credit market  • GDP  • economic stimulus package  • economist


Loading...

Loading...

Related Threads: The Dismal Science, Is It Recession?

Next story from this section »

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »