Budget Cuts May Throw U.S. Economy Into Recession

Job losses from scheduled budget cuts known as sequester could throw the U.S. economy into another recession unless Congress acts, some analysts are predicting.

The mandatory cuts to defense and non-defense spending stem from the "fiscal cliff" deal and are to take place March 1. Every program except for benefits like Social Security and some parts of Medicare will be cut.

The Bipartisan Policy Center, an independent research group, said last week that it expects roughly a million jobs across the country to be immediately lost from the budgetary cuts. The Congressional Budget Office estimates the job losses at 1.4 million.

CNBC

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has nearly 20 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Living in Melbourne, Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee