Federal Reserve chair Janet Yellen may have missed her window of opportunity to raise interest rates.
The economic data no longer paint a picture of even a tepid recovery. Since the start of the year, key indicators for the economy began pointing toward recession.
Add to that the recent Eurozone chaos surrounding the Greek default and a 30% crash in the Chinese stock market, and economic pressures are growing by the day.
There can be little doubt the U.S. economy is headed for more trouble. Consider these ominous signs:
- The revised GDP figure for the first quarter showed the economy contracting by nearly 1%. The International Monetary Fund revised its outlook for U.S. economic growth downward.
- For the first time since 2006, U.S. productivity fell for two consecutive quarters, as manufacturers struggle with rising labor costs and softening consumer demand.
- Factory orders year over year declined for the sixth consecutive month – something that has previously only occurred during or leading up to a recession.
- While the financial media report an official unemployment rate of 5.5%, the actual labor force participation rate comes in at only 62.9%. In other words, 37.1% of Americans are out of work – a true jobs recession.
The odds of the U.S. economy entering a recession are growing, to say the least.
We may, in fact, already be in a recession.
A recession will only be confirmed officially by retrospective data.
And that comes out months later – when it may be too late for inpiduals, businesses, and investors to make financial preparations.