Investing.com – Suddenly, a recession doesn’t seem like such a remote possibility.
The seeds are in place and a reliable warning sign is flashing.
Interest rates have jumped on concerns of an overheating economy and an outbreak of inflation.
The unemployment rate is at a 17-year low of 4.1%, with signs of wage inflation beginning to emerge,
Inflation on the consumer level rose more than expected recently, causing some worry.
And the Trump administration’s fiscal programs will add trillions of dollars of debt to the government’s balance sheet.
All of that could prompt the Federal Reserve to raise official interest aggressively in the coming year.
And virtually every economic expansion — and this one is now the third longest on record — has been snuffed out by either high interest rates or an economic shock.