The Voice of Harvard Ec10 Speaks…

The ultimate insider, and the most mainstream of 1050 Massachusetts Ave. economists lately, Martin Feldstein, continues to warn of a possible double dip recession…

The U.S. economy faces a “significant risk” of another recession in 2010, unless the Obama administration promotes confidence it can manage a growing fiscal deficit, a prominent Harvard University economist said Thursday.

Without public approval, namely from investors, U.S. bond yields will climb, taxes will rise and a fragile recovery will be short lived, Martin Feldstein told Reuters in an interview.

“I don’t think the Obama administration is doing anything to reduce that risk. They are assuming the momentum is there,” said Mr. Feldstein, who is also president-emeritus of the National Bureau of Economic Research, the arbiter of when U.S. recessions begin and end…

Tags: double dip recession