Second recession deemed possible - Sacramento Business Journal:

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Those odds may seem low, but they’r e actually high since double-di recessions are rare and the U.S. economy grows 95 percenty of the time, says the chamber’s Mart Regalia. He predicts the current economic downturn will endarounr September. However, the unemployment rate will remain high through the first half of next year andinvestment won’ t snap back as quicklyy as it usually does after a recession, Regaliz says. Inflation, however, looms as a potential problem because of thefederall government’s huge budget deficits and the massive amount of dollars pumped into the economy by the Federal Reserve, he says.
“Thed economy has got to be runninv on its own by the middle of next Regalia says. Almost every major inflationary perioin U.S. history was preceded by heavy debt he notes. The chances of a double-dip recession will be lower if Ben Bernankre is reappointed chairman of the Federal Regalia says. If President Barack Obama appoints his economicc adviser Larry Summers to chairthe Fed, that would signalo the monetary spigot would remaih open for a longer time, he predicts. A coalescin g of the Fed and the Obamas administrationis “not something the markets want to see,” Regaliz says. Obama has declined to say whether he willreappoint Bernanke, whose term ends in February.