Pimco, BlackRock Say U.S. Economy Is Running at ‘Stall Speed,’ Fed May Act

August 3, 2011 05:08

“We’re not looking at a recession yet, but we’re at a tipping point,” Gross said yesterday in an interview on Bloomberg Television. “We’re at what we call a stall speed in which corporate profits don’t grow, jobs aren’t created,” said Gross – Bloomberg.com

By Wes Goodman at Bloomberg.com


Pacific Investment Management Co. and BlackRock Inc., which together oversee almost $5 trillion, say the U.S. economy is stalling.

The U.S. recovery that began two years ago has been losing momentum and there are even odds the nation will slip into a recession, according to Harvard University economics professor Martin Feldstein.

The Fed may arrange a third round of quantitative easing, known as QE3, Gross said.

“This economy is really balanced on the edge,” Feldstein said yesterday in an interview on Bloomberg Television’s “Surveillance Midday” with Tom Keene. “There’s now a 50 percent chance that we could slide into a new recession,” he said.


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