Ethan Harris, the bank’s chief North American economist, said early data for August suggest that “an already weak recovery is getting weaker” with a rising risk of a relapse into recession, yet the two parties seemed determined to outbid each other with austerity measures.
“Politicians are clamouring for quick action, not to stimulate a dangerously weak economy, but to bring down the budget deficit. We strongly support efforts to bring down the deficit, but only once the economy is on a healthy growth trajectory,” Mr Harris said.
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