Economists are predicting a 70 percent chance the U.S. enters a recession next year, according to the latest Bloomberg survey.
The odds are up from a 65 percent recession prediction in November and a 30 percent prediction in June from previous Bloomberg surveys.
Bloomberg polled 38 economists from Dec. 12 to Dec. 16 for the latest survey.
High inflation and aggressive rate hikes from the Federal Reserve central bank are leading to widespread fears of a recession hitting next year.
Nearly 9 in 10 Americans say they are concerned about a recession while two-thirds of U.S. voters last month said the country was already in a recession.
The annual inflation rate decreased from 7.7 percent in October to 7.1 percent in November in a sign that rate hikes from the Fed appear to be working.
The Federal Reserve also eased up this month, slowing the rate hike to 0.5 percentage points after four consecutive 0.75 basis point increases this year.
But the Fed will continue to raise rates so long as inflation remains above the target goal of 2 percent.
Some fear the hikes will lead to job losses and cut into healthy consumer spending. The Biden administration points to the current levels of low unemployment and strong consumer spending as a sign the U.S. will not enter a recession.