Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Disappointing jobs data and the poor labor market have softened the potential for US economic growth—all factors that could lead to another recession, according to a new report from Standard & Poor’s, “US Economic Forecast: He’s Buying A Stairway To Heaven.” In the study released Friday, the ratings agency expects that US GDP growth will be 2.2% this year and 1.8% in 2013, prediciting a chance of another US recession to be 20% to 25% likely due to domestic and international financial issues.

The report directly followed a Federal Open Market Committee Meeting on Thursday, in which the US Federal Reserve took action to extend its guidance on interest rates, saying that it will keep rates low until mid-2015. Fed chairman Ben Bernanke said that the US central bank would spend $40 billion each month buying mortgage bonds until the economy stabilizes. In addition, the Fed also initiated another round of quantitative easing, which previously involved the purchase of $2 trillion worth of Treasury and mortgage bonds. 

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.