Wall Street’s concerns about Washington are escalating, with the December CNBC Fed Survey finding growing investor angst about a recession, the fiscal cliff and the Fed’s monetary policy.
The 48 economists, fund managers and strategists who responded to the survey rank the “fiscal cliff” as the top threat facing the U.S. economy and, partly as a result, put the chance of recession in the next year at a 13-month high of nearly 29 percent.
“The fiscal cliff conversation has edged its way to the ‘head of the class’ when considering the possibility of a new recession,” says Kevin Giddis, Raymond James/Morgan Keegan.
Pimco’s Tony Crescenzi sees an even bigger problem looming. “The medium to long-term budget problems of the United States are far more important to the ultimate destination of markets than is the ‘fiscal cliff.'”
via CNBC
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