US Experts Expect Recession Within Two Years: Poll

A majority of economists expect a US recession in the next two years, but have pushed back the onset amid Federal Reserve actions, according to a survey released on Monday.

The National Association for Business Economists (Nabe) found far fewer experts now think the next recession will start this year compared to a survey in February.

Nabe conducted its policy poll as President Donald Trump put the Fed under constant attack, demanding more stimulus, but before the central bank cut the benchmark lending rate on July 31.

However, the Fed was already sending strong signals that it intended to pull back on the rate increases made in 2018 due to concerns starting to dog the economic outlook, including the trade war with China.

"Survey respondents indicate that the expansion will be extended by the shift in monetary policy," said Nabe President Constance Hunter, who is chief economist at KPMG.

Only two percent of the 226 respondents now see a recession this year, compared to 10 percent in February's survey, Nabe said.

However, "the panel is split regarding whether the downturn will hit in 2020 or 2021, Hunter said in a summary of the survey, which showed 38 percent expect a contraction of growth next year, while 34 percent don't see it until the following year.

More economists shifted their recession prediction to 2021, narrowing the gap from the prior report, which had many more expecting the change next year.

The results show 46 percent expect at least one more rate cut this year from the Fed, while about a third see policy holding where it is now, with 2.25 percent as the top end of the policy range.

Economists are sceptical about a resolution to Trump's trade wars, although 64 percent said a "superficial agreement is possible", Nabe said.

But that was before Trump announced another round of tariffs of 10 percent on the remaining US$300 billion in goods not yet hit by US punitive duties.