The building blocks are already in place for an upturn, said Dr Lawrence Chimerine, managing director and chief economist for the Economic Strategy Institute, and more interest rate cuts are expected from the Federal Reserve. The economy also should benefit from the retroactive tax cuts he expects Congress to approve.
The big economic risk is consumer confidence. Lower interest rates, particularly long-term rates, have helped keep the economy in positive territory. But with corporations facing pressures to improve profits, companies may be tempted to trim payrolls, creating economic fear in the newly unemployed and those who fear they might be next. “This could push a flat economy into recession.” Chimerine said.
The economist concluded with a series of tips for coping during these economic times. Details of his presentation will be included in the June issue of Trailer/Body Builders.