J.P. Morgan forecasts deeper recession in U.S., Europe

By Laura Mandaro
SAN FRANCISCO (MarketWatch) — J.P. Morgan Chase’s economics team on Friday said it cut its outlook for the U.S. and Western Europe to reflect a deeper recession. “Weak data, striking declines in October surveys and poor financial performance,” prompted the investment bank to lower the average pace of growth for the two regions by a full percentage point for the third and fourth quarters. Economists led by Bruce Kasman lowered their views on the fourth-quarter U.S. growth rate to -4% from -2%. They still expect the Fed to cut its benchmark lending rate by a half percentage point next week and a quarter point in December. For Britain, J.P. Morgan anticipates the economy will contract 2.75% for the next two quarters, down from a -2% drop previously forecast. For Europe, the bank sees growth shrinking 1.5%, worse than a 0.5% drop previously.

Random Posts

• Grantham: Stocks expensive
• More Proof That Uncle Sam Is In Trouble
• The story of today’s deficits starts in January 2001, as President Bill Clinton was leaving office.
• Use the term “devaluation,” not deflation.
• The Federal Reserve is the real culprit, the ones really calling the shots.

Leave a comment