S&P: U.S. economy now faces 20% chance of a double-dip recession

The United States faces 20-percent odds of a return to recession, rating agency Standard & Poor’s said on Tuesday, although it said a slow recovery remains the company’s baseline forecast for the world’s biggest economy.

“But the risk of another downward leg on the recession remains real,” the agency said in a statement.

While S&P said it could be underestimating American consumers, years of stagnation, as Japan has seen, could also occur.

Trending on HotAir Video