Market May Lose Its Gains: Economist Tells CNBC

In an interview with CNBC, Robert Ward, director of global forecasting at the Economist Intelligence Unit, has warned that the current economic recovery may be W-shaped rather than V-Shaped.

According to Ward, the GDP growth in the fourth-quarter was driven by government stimulus, and inventories. Ward believes that this growth will not be sustainable. “We’re looking for the economy to start losing steam,” he said.

Ward expects some improvement in unemployment over the next few months but believes it will not be as dramatic as optimists are hoping. Ward also expects the Federal Reserve to hike interest rates in the third-quarter of this year.