“The growth in the U.S. economy is cooling so much that concerns are arising that it will hit stall speed and sputter out, said Peter Fisher, head of BlackRock Inc.’s fixed income portfolio management group.
U.S. gross domestic product grew 1.9 percent in the first quarter, well below initially forecast by many and beneath preliminary estimates of 2.2 percent.
With a cooling global economy and fears of a year-end “fiscal cliff”—a combination of expiring tax breaks and automatic spending cuts to government spending kicking in at the same time—the U.S. economy may be facing something a little more sinister than a mere soft patch.
“We’re worried about growth slowing down everywhere, and about it being self-reinforcing,” Fisher told USA Today.”
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