US economy still not on easy street
NEW YORK: The US economic recovery remains on shaky ground, well over a year after the recession officially ended, and two top strategists said on Monday they fear the economy could suffer a new blow next year.
The big concern is that growth remains tethered to government support and is still not sufficient to reduce an unemployment rate that last month surprised financial markets with a rise to 9.8 percent.
Speakers at the Reuters 2011 Investment Outlook Summit in New York on Monday were cautious about the economy's prospects. John Taylor, chief executive of FX Concepts, which operates the world's largest currency hedge fund, gave the bleakest assessment. "I would argue that by the middle of next year, we will be in a recession," said Taylor, noting that the government remains the biggest creator of growth since the recession ended in June 2009. Gail Fosler, president of the GailFosler Group LLC, a strategic advisory service, also warned of challenges at the Reuters Investment Summit. "We are still in a time where there seems to be more downside risks. -Reuters