The risk of a US recession next year is rising fast. Early warning indicators from US 'flow of funds' data point to an incipient squeeze, the long-feared capitulation after five successive quarters of declining corporate profits. Yet the Fed has set the course for a rise in interest rates in December and seems to be on automatic pilot. Michael Howell from CrossBorder Capital said "we are seeing a serious deterioration on a monthly basis. We think the US is heading for recession by the Spring of 2017. It is absolutely bonkers for the Fed even to think about raising rates right now." The growth rate of nominal GDP has been in an unbroken fall since the start of the year, falling from 4.2pc to 2.5pc. "It is a little scary. When nominal GDP slows like that, you can be sure that financial stress will follow, " said Lars Christensen, from Markets and Money Advisory. (Source: The Telegraph - UK) (VIEW LINK)
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