New Study Clarifies Stagflation Risk
ECRI
21-July-2008
It was only last month that financial markets decided the Fed would hike rates multiple times this year. Of course, alongside inflation worries, the Fed had intimated that risks to economic growth had diminished – a view that was effectively retracted recently, again reducing Fed rate hike expectations.
The root of the confusion is lingering doubt that the U.S. economy is in a recession at all. ECRI’s research, which correctly predicted the last two recessions, sets the record straight on the true state of the U.S. economy and clearly assesses its longer term prospects in light of the continued housing downturn and the intensifying credit crunch.
This information is excerpted from a full report issued on July 18, 2008 to professional subscribers. For information on how to read the complete story and to subscribe to ECRI's services click this link.