Waters of the U.S. Rule Has Stalled in Court; U.S. Heading for Recession?
An appeals court has ordered a nationwide stay against the Waters of the U.S. Rule. The court decision says the rule could be overturned based on the merits of the lawsuits filed against the regulation. The Order was issued by the Sixth Judicial Circuit Court of Appeals against the Environmental Protection Agency and the Army Corps of Engineers on Friday. A three-judge panel voted 2-1 to stay implementation over concerns that the rule may cause a burden to state and federal governments, private parties and the public in general.
The chance of the U.S. heading into a recession has jumped but remains small, at 15 percent. That does mark the highest level since October of 2014. The Economists cites the delayed Federal Reserve Rate hike and turmoil in global equity markets. Concerns over China and the potential spillover to other economies have led economists to cut their third-quarter growth forecasts to 2 percent from as high as 3 percent in July. China also had worried Fed officials, who cited it as a risk to their outlook for economic growth and inflation. There is a bright spot, though: In a separate survey, economists projected the U.S. won't enter a recession until 2019.