Economists see stagflation in U.S. as long-term risk: report

WASHINGTON, June 22 (Xinhua) -- Recent surveys show economists and fund managers see increased risks of stagflation on the horizon, naming stagnation as a long-term risk in the United States, according to CNBC.

Some 80 percent of the surveyed economists believed that stagnation is the greater long-term risk to the U.S. economy than recession, CNBC reported, citing the Securities Industry and Financial Markets Association.

"Moreover, a recent Bank of America global fund manager survey found fears of stagflation are the highest they have been since June 2008," the report said.

Stagflation, a term coined in the 1970s to refer to a combination of high inflation and high unemployment, would be the most possible economic backdrop in the next 12 months, it added.

Meanwhile, according to Fox Business, the Wall Street is increasingly betting that the U.S. economy will tumble into a recession next year as the Federal Reserve raises interest rates at the fastest pace in two decades in order to curb inflation.

Bank of America Global Research strategists have ratcheted up the odds of an economic downturn to 40 percent in 2023, with gross domestic product slowing to almost zero by the second half of next year, said Fox Business.