Less Fear of Recession

By Isaac Cohen*

After the December plunge in the stock market, the trade tensions between China and the United States and the federal government shutdown in Washington, in January, there was more talk about the risk of recession.

For instance, the Conference Board, known for measuring business confidence, released the results of a survey among 800 CEOs, from all over the world, revealing that the threat of a global recession was their top concern.

Additionally, two prominent economists, identified with the Democratic Party, separately expressed concern about a coming downturn. Harvard Professor Lawrence Summers, former Treasury Secretary and advisor to President Barack Obama, in a column in The Washington Post (01/08/19) said “the global economy is more likely to suffer from a downturn than from overheating in the next two years.” Also, New York University Professor Paul Krugman, Nobel laureate and celebrated New York Times columnist, wrote (01/25/19) “I’m not saying that a global recession is necessarily about to happen. But the risks are clearly rising.” Even the central bank Chairman Jerome Powell, in an interview at the Economic Club of Washington, saw the need to dispel those concerns, saying “I don’t see a recession” in 2019 (Washington Post 01//11/19).

. One month later, some of these fears have decreased. For instance, the threat of another government shutdown has vanished, until next September. Recent reports circulating in Washington, on the trade talks between China and the United States, reveal there may come to an agreement. Finally, the Federal Reserve has turned patient about increasing interest rates and the markets greeted the good news posting the best January in thirty years.

*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.

About Ramón Jiménez

Ramón Jiménez, Managing Editor de MetroLatinoUSA.Com (MLN). Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia (UDC). Email: [email protected]

You must be logged in to post a comment Login