Lakshman Achuthan Not Giving Up the Ghost on Recession Call
Lakshman Achuthan, renowned contrarian economist and head of the Economic Cycle Research Institute (ECRI), said the U. S. economy continues to be in recession. In an interview with Bloomberg’s Tom Keene and Sara Eisen (see video below) reiterated his position: “Since mid-2012, the United States entered into recession.”
Regarding the Fed, Achuthan explained, “The U.S. central bank would not keep its ultra-accommodative monetary policy, if it was not convinced that the U.S. economy is sick.”
Achuthan added, “it is impossible not to take into account that since the beginning of the recovery about one million Americans between 35-54 years have lost nearly a million jobs.”
“The Fed has gone to the wealth effect to stimulate the economy and that mechanism is broken,” Achuthan stated.
Back December, Achuthan told CNBC’s Larry Kudlow the economy had been in recession since July, 2012 [link].