By the middle of 2011 the US “will be in a recession”

While according to the official statements the recession in the US ended last year, the US economy is still on the brink of a cliff with top strategists predicting the economy could suffer a new blow next year. The main concern is that the US growth heavily depends on government support and it cannot reduce an unemployment rate that last month surprised financial markets with a rise to 9.8 percent.

Speakers at the Reuters 2011 investment Outlook Summit in New York on Monday were cautious about the economy's prospects. John Taylor, chief executive of FX Concepts, which operates the world's largest currency hedge fund, gave the bleakest assessment.

"I would argue that by the middle of next year, we will be in a recession," said Taylor, noting that the government remains the biggest creator of growth since the recession ended in June 2009.

Gail Fosler, president of the GailFosler Group LLC, a strategic advisory service, also warned of challenges at the Reuters Investment Summit.

"We are still in a time where there seems to be more downside risks. There's no momentum in the economy, it seems to be drifting with the current," she said.

Taylor has been skeptical for some time whether the Fed's actions can truly support the economy.