SocGen's Edwards: Trump's fiscal stimulus will not stave off recession

Fiscal expansion will come too late

A sharp rise in inflation next year will "crush" US consumption despite fiscal expansion planned by President-Elect Donald Trump, according to Société Générale's strategist Albert Edwards.

Edwards (pictured) said headline inflation could reach 3% in the first quarter of 2016, despite fiscal stimulus measures planned by Trump. "The only thing at the moment keeping the US economy overall out of recession is the relatively robust consumer. The surge in headline inflation from zero to 2.5%-3% in Q1 next year is likely to crush consumption. "...