Economists say odds of a U.S. recession likely in 2016

The global economy is in shambles. Even with the amount of money pumped into the financial markets by the Federal Reserve, the European Central Bank (ECB), the People’s Bank of China (PBOC) and other central banks, the global economy still can’t seem to get better.

As the Fed delays raising interest rates and the global equity markets experiencing a turmoil, economists have now increased their expectations for a recession to hit the United States next year.

Bloomberg News released the results of an Oct. 2 to Oct. 7 survey of economists, and it found that the probability of a recession hitting the U.S. within the next 12 months spiked to 15 percent, up from 10 percent for the past 13 months.

The chart below shows economists’ expectations of a recession coming to the U.S.

Financial experts say the crisis unfolding in China could perhaps spill into the U.S. and other parts of the global economy. Even the Fed is concerned about China’s short-term economy.

Here is what the Fed said in its minutes of the Sept. 16-17 Federal Open Market Committee (FOMC) meeting, which were released last week:

“Although U.S. economic data releases generally met market expectations, domestic financial conditions tightened modestly as concerns about prospects for global economic growth, centered on China, prompted an increase in financial market volatility and a deterioration in risk sentiment during the intermeeting period.”

Perhaps Peter Schiff will be right again (SEE: Peter Schiff: Federal Reserve won’t hike interest rates to ensure Democrats win White House). The Fed will issue another round of quantitative easing, er, money printing to fight a potential recession and ensure Hillary Clinton wins the White House in 2016. Only time will tell.

It’s quite apparent that the U.S. central banks taking the training wheels off and taking away the pixie sticks was just a little bit too premature.