Bank of America economist warns of double dip risk

clock

The game of 'chicken' being played out by US politicians could increase the risk of a double-dip recession, Bank of America warns.

Ethan Harris, North American economist at the bank, points out while consumer confidence is slowly creeping up, the recent increase in jobless claims shows the "weak recovery is getting weaker". He claims politicians have got their priorities wrong as the mid-term elections approach. "The rising risk of a double dip puts increasing focus on the policy response. In the run up to the election, politicians are clamouring for quick action, not to stimulate a dangerously weak economy, but to bring down the budget deficit," he says. "It is a bipartisan effort. Many Republicans want to ca...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

ECB keeps rates steady at 2% for the first time in a year

ECB keeps rates steady at 2% for the first time in a year

Not committed to a 'rate path'

Patrick Brusnahan
clock 24 July 2025 • 2 min read
Trump labels Fed's Powell a 'numbskull' and says he will be out in eight months

Trump labels Fed's Powell a 'numbskull' and says he will be out in eight months

Powell to leave post in May 2026

Linus Uhlig
clock 23 July 2025 • 1 min read
Bank of England: We cannot compromise on basic financial stability

Bank of England: We cannot compromise on basic financial stability

Calls for cuts to red tape

Patrick Brusnahan
clock 22 July 2025 • 2 min read
Trustpilot