Korean Job Discussion Forums

[Adventurer]

Page last updated at 15:48 GMT, Wednesday, 2 April 2008 16:48 UK
E-mail this to a friend Printable version

Fed boss says recession possible

Mr Bernanke is testifying to the Joint Economic Committee of Congress
Federal Reserve boss Ben Bernanke has warned that US gross domestic product (GDP) could contract in the first six months of 2008.

"It now appears likely that real GDP will not grow much, if at all, over the first half of 2008 and could even contract slightly," he told Congress.

Two consecutive three-month periods of negative growth is generally accepted as the definition of a recession.

He did not say "recession", but it is the closest he has come to doing so.

Mr Bernanke is beginning two days of testimony to the US Congress, where he is likely to quizzed on the Fed's rescue of Wall Street investment bank Bear Stearns, which got into trouble because of its exposure to sub-prime loans.

MONEY