Accelerating inflation fanned by higher wages and low unemployment, coupled with a responding rise in interest rates, could spark a recession as soon as the end of 2019, according to a survey of economists by the National Association of Business Economics. High asset prices, increased consumer borrowing and trade conflicts could also end the second longest economic expansion in US history, analysts said. The NMBA said that while it is too early to predict whether an outright recession would occur, “rising prices are likely to lead to more spending cuts than previously anticipated.”
Accelerating inflation fanned by higher wages and low unemployment, coupled with a responding rise in interest rates, could spark a recession as soon as the end of 2019, according to a survey of economists by the National Association of Business Economics. High asset prices, increased consumer borrowing and trade conflicts could also end the second longest economic expansion in US history, analysts said. Others note higher crude oil prices and new regulations on shipping emissions could increase costs to the economy.