Slump unlikely in next year: Yellen

Former head of the Federal Reserve Janet Yellen does not expect there to be a recession in 2020, but there are considerable risks in the markets, she told attendees at the World Business Forum. "I think the odds of a recession are higher than normal and at a level I am frankly not comfortable with," she said. "There are definite downside risks to the U.S. economy...so there is good reason to worry." One of those risks is low interest rates, which unlike during the Great Recession now have little room to be cut further. On top of the monetary policy limitation, Yellen said, the indebted government's fiscal policy may play a less prominent role in stimulating growth should the U.S. enter a recession. But businesses can begin to prepare. Those who weathered the last financial crisis were able to quickly cut costs and put investment projects on hold. Yellen recommends owners stress test their firms by playing out how a recession would impact different revenue streams and assets. How concerned are you about another recession? Are you preparing your business? #WBFNYC #LinkedInSmallBusiness #recession

A conversation with Janet Yellen @ World Business Forum NYC #wbfnyc