BlackRock Tax Advisors

Just a quarter of the business economists and analysts responding to a National Association of Business Economics survey expect the U.S. to fall into recession this year, with fears assuaged by factors such as tumbling inflation and resilient growth. However, a growing share of business forecasters worry that the Fed is keeping rates unnecessarily high, with 21% calling its approach “too restrictive,” compared to 14% in August. Respondents also expressed concerns about potential conflicts in the Middle East, and between China and Taiwan. Another 85% are worried about political instability in the U.S. before or after the November 5th presidential election. The survey comes amid news that both Japan and the U.K. economies have slipped into recession.