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Those odds may seem low, but they’r actually high since double-dip recessions are rare and the U.S. econom y grows 95 percent of the saysthe chamber’s Marty He predicts the current economic downturn will end arounds September. However, the unemployment rate will remain high throug the first half of next year andinvestmengt won’t snap back as quickly as it usually does aftedr a recession, Regalia says. Inflation, however, loomsa as a potential problem because of thefederal government’w huge budget deficits and the massivr amount of dollars pumped into the economyu by the Federal Reserve, he says.
“The economy has got to be runnintg on its own by the middle of next Regalia says. Almost every major inflationar y periodin U.S. history was preceded by heavy debt he notes. The chances of a double-dip recession will be lowe if Ben Bernanke is reappointed chairman of the Federal Regalia says. If President Barack Obama appoints his economic adviser Larry Summers to chairthe Fed, that woulds signal the monetary spigot would remainb open for a longer time, he A coalescing of the Fed and the Obamas administration is “not something the markets want to Regalia says. Obama has declined to say whetheer he willreappoint Bernanke, whosd term ends in February.
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