Unfolding Credit Crisis Seen As Top Economic Threat

** FILE ** Signs for American Express, Master Card and Visa credit cards are shown on a New York store's door on in this July 23, 2007 file photo. Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come. (AP Photo/Mark Lennihan, file)
By  | 

Washington (AP) Experts see fallout from the credit crisis as the economy's number one threat.

A survey from the National Association for Business Economics shows 34 percent of its members rank financial market turmoil from the subprime loan mess as the gravest problem for the economy over the next two years. That compares with 18 percent in an August Survey.

A year ago, the credit crisis didn't even register as a chief threat.

The latest survey also highlights potential problems looming for the Federal Reserve board.

Some 10 percent of respondents see inflation as the biggest threat to the economy. The fed has battled the credit issues by cutting interest rates recently, but to fight inflation it would have to raise rates.

Fed chairman Ben Bernanke has hinted at another rate cut this month.