Observer: Fed admits US recession on cards

[Eugene]

Fed admits US recession on cards

Heather Stewart, economics correspondent
Sunday August 6, 2006
The Observer

The United States faces almost a 40 per cent chance of slipping into recession
in the next 12 months, according to the Federal Reserve's own market model.

As Fed chairman Ben Bernanke prepares to decide whether to raise American interest
rates for the 18th time on Tuesday, bond prices and the high level of borrowing
costs are now showing a 38 per cent chance of recession, according to a model
published by Fed economist Jonathan Wright earlier this year.

After official payroll figures released on Friday showed that the economy created
fewer jobs than expected last month, Wall Street began predicting Bernanke would halt
the Fed's rate-hiking campaign this week. But some economists believe the central bank
has already gone too far.

-snip-

Full article: http://observer.guardian.co.uk/business/story/0,,1838081,00.html

[magellan]

1. If the Feds are 'fessin, that means we're in recession now

...and it's only going to get worse.

[cornermouse]

2. I'm shocked they admitted it.

[converted_democrat]

3. K&R.. I can't believe they're admitting to it, we must be in for a hell

of a ride..

[Hissyspit]

4. But that Fox News guy who interviewed Shrub the other day said

the economy is doing great and that those who are worried about it are a majority of Americans but that they are delusional!

He's on Faux, he couldn't be anything but fair and balanced in his commentary made in the guise of a interview question to the pResident!

[tanyev]

5. It's Clinton's fault! It's Clinton's fault!

[n2doc]

6. Yep they will be calling it the "Clinton Recession II" n/t