Fed Chief Hints At Looming Recession

U.S. Economy May Shrink In First Half Of 2008, Signaling Start Of Recession, Bernanke Warns

(CBS/AP)  Federal Reserve Chairman Ben Bernanke said Wednesday a recession is possible and policymakers are "fighting against the wind" in trying to steady a shaky economy. He would not say if further interest rate cuts are planned.

Bernanke's testimony before the Joint Economic Committee of Congress was a more pessimistic assessment of the economy's immediate prospects than a report he delivered earlier this year. His appearance on Capitol Hill came amid a trio of economic slumps in the housing, credit and financial areas.

"It now appears likely that gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly," Bernanke told lawmakers. GDP measures the value of all goods and services produced within the United States and is the best barometer of the United States' economic health. Under one rule, six straight months of declining GDP, would constitute a recession.

Bernanke said "a recession is possible" but he also said he expects more economic growth in the second half of this year and into 2009, helped by the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses as well as the Fed's aggressive reductions to a key interest rate.

"Much necessary economic and financial adjustment has already taken place, and monetary and fiscal policies are in train that should support a return to growth in the second half of this year and next year," Bernanke said.

To try to limit the damage, the Federal Reserve has aggressively cut a key interest rate, now at 2.25 percent, to spur buying and investing by individuals and businesses. At the Fed's last meeting in March, however, two members dissented from the Fed's decision to sharply cut rates, showing a rare division in the often unified front the Fed shows the public. The dissenting officials, who had reputations for being extra concerned about inflation, favored a smaller reduction. Although Bernanke said he hopes inflation will moderate in coming quarters, he acknowledged that high energy prices have clouded the inflation outlook.

Many economists had predicted the Fed might drop it key that rate again when it next meets April 29-30, although Bernanke's remarks cast some doubt on that scenario.

"We are fighting against the wind," Bernanke said. The Fed's interest rate cuts and other actions are working their way through the economy and are having the effect of "at least offsetting significantly the headwinds coming from these financial factors," he said.

On Wall Street, stocks initially dropped after the Fed chief's remarks but later turned slightly positive.

Housing, credit and financial woes are threatening to push the country into a deep recession. The situation has emerged as a top concern for presidential contenders and a hot-button issue for Congress. It has thrust the White House and the Fed into crisis-management mode.

Faced with mounting home foreclosures and job losses, Bernanke has been under immense political and public pressure to provide relief and help turn around a faltering economy.

Committee Chairman Sen. Charles Schumer, D-N.Y., peppered Bernanke with questions about the Fed's moves to aid once mighty Wall Street firm Bears Stearns and then juxtaposed that with what he believed was a lack of help to millions of people at risk of losing their homes.

"I hope that you will use your position to jawbone this administration to get behind the housing relief effort before Congress." Schumer said. "Addressing the housing crisis head-on will do as much to instill confidence in the markets as lowering interest rates or bolstering regulatory oversight of wayward mortgage lenders and financial institutions. We need to do all of it."

Sen. John Sununu, R-N.H., countered that government is taking steps to help. "The suggestion that the Fed's taken action but nothing else has been done I think is a little bit misleading," he said.

Bernanke urged Congress to take steps to help bolster the sickly housing market - a major source of economic stress - and to aid homeowners in danger of losing their homes.

[Gary Kempf]

Now I can feel all warm and fuzzy knowing Bernanke will admit problems with the ecomomy without using the R-word.

[excoachken]

Ben, you must be even more stupid than the Cowardly Cowboy if you just caught on to this economic reality!

[tomanyt]

"Fed Chief Hints At Looming Recession"...Wow, this guy is some sort of super-brain.

[underdogus]

from richest to rags!! The Great depression will look like a small blip compare to the economic collapse the US is about to suffer,we''re simply waiting for the Judgments to come, it would be stupid to think a Nation that despises God will have peace and prosperity............

[incog-nito]

Watch for President Bush to come out with a statement reassuring the American people that there is no recession and everything is just fine.

[oleander8]

"Fed Chief Hints At Looming Recession"

Hints? Looming? wake up and smell the coffee, Mr Fed Chief -- it''s arrived!

[walt1944-2009]

The "Head of the Fed" is finally admitting that we are heading for a recession. This something that comes as absolutely no surprise to the average person who has been struggling along for the past 7 years and especially for the past 6 months knowing exactly that!

Conveniently, like his father before him, The Great Emperor Bush II is out of the country, away from all the "doom and gloom" we have to put up with, "vacationing" on the beach in the Balkans, since the Balkan countries are the only ones who would allow the Great Emperor to visit them! The Great Emperor, as everyone knows, is not welcomed in Europe and fears that he could be arrested and tried in any European country for war crimes against humanity.

So, again like his father before him, the Great Emperor Bush II is lounging on the beach thinking of absolutely nothing (so what else is new?) and hoping that the Great Bird of Paradise will not find him as it did in the Rose Garden several years back.

Incidentally, unlike his father 17 years ago, the Great Emperor Bush II hasn''t barfed on anyone, YET!!!

SIG HEIL, BUSH!!!!
sig heil, (more of the same) McCain???

[williamfold]

"Fed Chief Hints At Looming Recession"

my question is, why is he the last to know?

[omega39-2009]

Yesterday we learned that Nike paid it''s workers $59 dollars a month and that was ten percent over the countries minimum wage. If we divide that over an 8/hr day 5 day workweek (and you can bet its more) that equals about 32 cents an hour. Nike wants to pay 32 cents an hour and sell there shoes for $150 pair. That is why we''re heading into recession.

[fuzzybear9]

Hello Stockholders

Let me just say that some friends returning from a visit to Greece said that it takes almost 2 U.S. currency dollars to every 1 Euro dollar.

so the $168 billion dollar stimulus package is really only a $84 billion Euro dollar stimulus package.
you would think Ben would understand this.

and might I just add, I don`t see why we keep using the term Recession the term is simply Depression.

the U.S. is slipping into a Depression not only fisically but mentally.

Sincerely yuor eye on the fed Bear `` no relation to Sterns ``
Fuzzy

[antoniof123]

Bernanke said he expected unemployment to move "somewhat higher in coming months."

Well, there you have it folks the neo cons finally are saying it so it is now a reality to heck with the fact that most of America has seen this for months.

Why does this always happen when a Republican is in office. Nixon, had price freezes that lead to a disaster for the country and the world. What did you think we that lived in that time forgot. Then Bush the 1st had a major unemployment problem that lead the world into a mess, now of course jr. the village idiot has created the same mess.

Wake up America the neo cons don''t care about you they have money and jobs. They are the ones causing this mess.

[kiwi_chick]

Ben, where ya been? We were in a recession about 9 months to a year ago. We are now heading into a depression. My 401k can attest to that. How much do they pay you Ben? I''ll take a quarter of what you''re paid to do your job and I''ll be up to date. Most middle and lower income Americans can do the same...why don''t you come and see one of us a bit sooner, we''ll give you a spot on rendering of what the economy is doing.

[timdgrim]

newsbusters.org....What a brain washing JOKE!!

[singingrick]

Thanks Bushies! Can''t wait to see what the latests talking points are about why this isn''t the result of moronic Republican borrow and spend policies. Can''t wait to hear about why high gas prices aren''t Bu$h''s fault either. Let the spin begin.

[mudrose-2009]

Wake up America the neo cons don''''t care about you they have money and jobs. They are the ones causing this mess.

Posted by antoniof123

Well actually it is numbnuts like you who want to make a quick buck and sell out the housing industry with flakey mortgages and the under educated buy into them with no down payments and very little cash. Next it''s the Al Bore''s of the world who prey on innocent and unsuspecting people with his global warming hype that raises the prices of wheat, milk, eggs because we need to find alternative forms of energy not realizing that ethanol is more of a pollutant. Then it''s the EPA and the Dimnowits who own 25% of our land and will not let the oil companies drill for oil on them; or give the Big Oil companies permits to further drill offshore, thereby driving up the price of fuel and then blaming the Oil Companies for not doing anything in the form of incentives. Then it''s congress taxing Oil Companies to the tune of $50 billiion which they in turn pass on to the comsumer. See, that''s how the dimnowits work. But according to stats, Blue States have a high school drop out rate of 1 out of every 4. So we have numbnuts like you that think they know it all. You''re a real deep thinker, now aren''t ya.

[gkc99]

So the "borrow and spend" Repug Party and the Darth Bushit regime have borrowed and spent us into the second recession of the Bushit era.

"you''re doing a heck of a job, Bushits!"

[tejasdemo]

Hey thanks pal ! Regular folk have been in a recession for the last 8 yrs. Gas has been 2.50+ per gallon. House prices are so ridiculously over priced compared to the avg man''s salary that the only way to move them was to create a phony financial market.

H ell, even a green pepper cost a dollar ! A DOLLAR FOR 1 LOUSY GREEN PEPPER !

Yea, thanks. No recession for you though huh ? You and your buddies are millionaires. It may get so tough you''ll have to drive your own cars.

[gkc99]

"But according to stats, Blue States have a high school drop out rate of 1 out of every 4. So we have numbnuts like you that think they know it all. You''''re a real deep thinker, now aren''''t ya. "--Posted by mudrose


Oh yeah genius, that''s why Red states like Kansas and Texas are such hotbeds of innovation and Blue states like California are such backwaters.

Get real--stop listening to Rushed Limpbough and Bull O''Really and try informing yourself for a change!

[aerodog]

Well we''ve all thought this all along - but kinda of scary to hear/read it coming from the fed chief. Yikes.

[bogusbones]

his powers of observation astound me. just like his fearless leader - "a gallon of gas might be $4.00 by summer?"
these guys are so out of touch with reality. living in the cacoon called washington d.c. they don''t even see the slums and the poverty they drive by everyday to get to work. the country is rotting from the inside and they sit back and come up with platitudes desinged to somehow placate an anxious and fearful public.

[hungry1968]

Fed Chief Hints At Looming Recession
U.S. Economy May Shrink In First Half Of 2008, Signaling Start Of Recession, Bernanke Warns





That''s why he''s the fed chief!!!

It only took him 4 months of being in a recession, to realize that a recession is looming!!!

Obviously he needs a raise!!!

[demslie]

In the late 1970%u2019s, Democrats owned the U.S. House, Senate, Supreme Court and most State Legislatures. When Jimmy Carter was elected President everyone thought, now Democrats own everything and we can finally stop hearing about all the negative things Democrats scream daily. Instead, Democrats continued all the negatives about America and we had a recession with high inflation, high unemployment, a stagnate economy because of ever increasing taxes and nothing but doom and gloom from our fearless (Democrap) Leaders. In 1980 Ronald Reagan Won a Land-Slide Victory for President not just because of the economy, but because the entire nation was so tired of the endless negatives rants from Democrats who were running the country. The Democrats had spent years telling us about their Anger and Hate for Republicans and hate for the Military hate for Rich people hate for White people hate for Capitalism Hate for Christianity hate for Our Foreign Policy and hate for the American Flag. History is repeating itself. No wonder John McCain is polling higher than O%u2019Bama or Hitlery in %u201CLikeability%u201D, %u201CHonesty%u201D and %u201CElectability%u201D.

[kissamaarse]

He "hints at looming" recession? Ha! Ask almost any American family making under $75,000 what they think of that comment. As far as most are concerned, we are well into the 2nd Bush recession. This one will be deeper, more painful, because gas prices have tripled since the 1st Bush recession. Tighten your belts, folks.

[Syndicate]

Bernake is an Idiot. He caused this mess last summer when he started raising rates. I didn''t think it was a good Idea and now after a couple of emergency rate cuts I know I was right.

[singingrick]

The Bush Budget Deficit Death Spiral


Lenders talk about a %u201Cdebtor%u2019s death spiral.%u201D It occurs when borrowers get so far in over their heads they begin borrowing money just to cover the interest payments on past borrowings. The borrowers have to do this to keep the lending flowing but they can no longer plausibly pay down the principal. As new debt compounds on old, bankruptcy becomes imminent. Further lending is foolhardy. Foreclosure is only a matter of time.

[hungry1968]

Posted by demslie at 11:10 AM : Apr 02, 2008




Summarized translation: "Blah, blah, blah, democrat, blah, blah, blah, blah, democrat, blah, blah, blah, blah, blah, blah, democrat, blah, blah, blah, blah, blah, blah, democrat, blah, blah, blah, blah, blah, democrat, blah, blah, blah, blah, democrat, blah, blah, blah, blah, blah, democrat, blah, blah, blah, blah, democrat, blah, blah, blah, blah, democrat, blah, blah, blah, blah, democrat, blah, blah, blah, blah, blah, blah, democrat"

[mudrose-2009]

Bernake is an Idiot. He caused this mess last summer when he started raising rates. I didn''''t think it was a good Idea and now after a couple of emergency rate cuts I know I was right.

Posted by cbscrash07

So apply for his job.

[hungry1968]

Note to the logical minded americans on here. Don''''t get sucked in by the hateful and juvenile postings on here. At this point it does nobody any good to play the blame game. Just go out there and keep plugging away. Keep a positive attitude and you will get thru this. Don''''t become negative like most posts on here. It won''''t do anyone any good. Have nice day.

Posted by jamesm12341 at 11:21 AM : Apr 02, 2008




Don''t worry James - once Obama is elected, the stock markets will rebound the very next day.

Within two years of his being sworn in, he should have erased the Bush legacy on our economy, and by the end of his first term, the economy will be vibrant and strong again. You know - like it was before Bush took office.

[hungry1968]

hungry1968. Nice translation, except you''''ve overestimates the moron''''s intelligence level.

Posted by FloydZepp at 11:28 AM : Apr 02, 2008




I can''t even read his posts. They drone on so boringly, that they remind me of Ben Stein reading a dictionary.

[occams_taser]

This guy is a moron, like all BushCo appointees.

[bp5511]

Please have the Democrats increase Unemployment checks so those out of work can buy gas, food and toilet paper to help support those countries where they allowed USA Companies to move to through the NAFTA act. Oh as for the united world, why don''t they just send every citizen of the USA a comfortable check and none of us will have to worry about a job or the future.

[occams_taser]

If America elects another Republican, what can you say but "they deserve what''s coming to ''em". Bush is hands down the worst President in US History. When the historians take that vote next year (they periodically update the list) he *might* get lucky and not finish in last. Even after his first term he was already in the bottom 25% -- and since then we''ve had Katrina, the mortgage implosion, the dollar further tanking, $100 gasoline, and more and more Iraq quagmire. I''m sure I''m leaving some other bad *** out of my list too.

[hungry1968]

This guy is a moron, like all BushCo appointees.

Posted by occams_taser at 11:31 AM : Apr 02, 2008




And Bush''s supporters.

[darnedsocks]

He means DEPRESSION, right? The definition of a "Recession" is a downturn in the economy last up to one year. If it persists longer than a year, it is called a DEPRESSION.

[annia1233]

ONLY PEOPLE to blame, Bush and Cheyne. They took our pain and sorrow for 911 and pushed us into an endless war. I am still hoping some one come up to tell us why we enter Iraq. and some one else telling us the real reason we did.

[annia1233]

ONLY PEOPLE to blame, Bush and Cheyne. They took our pain and sorrow for 911 and pushed us into an endless war. I am still hoping some one come up to tell us why we enter Iraq. and some one else telling us the real reason we did.

[element51]

demslie....Thanks for your trip down memory lane. Since I bow to your superior intellect I would never presume to take issue with you on any of your talking points. However, I just don''t recall the "hate" that you speak of. Maybe it was there and I just didn''t pick up on it. I must confess that I sometimes forget just how despicable the democrats are and that republicans are filled with love and compassion for everyone. Sometimes it takes a good slap in the face for me to come back to my senses. I must remember, war, high energy prices, high health care prices, poor education system, crumbling infra-structure, all GOOD....trying to repair damage..BAD. Republicans..GOOD....Democrats..BAD. Republicans...GOOD....Democrats..BAD.. There, I think I have it now. Thanks demslie for your help.

[dogband]

My president said we were NOT heading towards a recession.

This war has actually helped our economy.

Our future generations will be more than happy to pay for all the debts we are racking up. I know, I talked to them last night on the mother ship.

[hungry1968]

i don''''t worry now....i wont worry then no matter who president is....the president doesnt control me like he/she does you.....what? obama gets elected all of a sudden your resume looks better? you will be able to get a better job? what will change?

Posted by jamesm12341 at 11:34 AM : Apr 02, 2008





He''ll start by rolling back all of the Bush policies, like tax breaks for the wealthy, tax breaks for big oil companies, and he''ll start his universal health care plan which will be an economic BOON to America''s companies -- ALL OF THEM. Not just the big multi-billion dollar corporations. When that happens, the stock market soars, our pension plans / 401K rebound, and we''re all better off for it.

Are you like McCain? No clue as to how the economy works?

[hungry1968]

yea..and you can trust iranians right lib?

Posted by jamesm12341 at 11:41 AM : Apr 02, 2008




You can trust them a hell of a lot more than the neo cons in this country.

The neo cons have done a whole hell of a lot more damage to America, than Iran could EVER do.

[annia1233]

jamesm12341, the resume won''t look better. I do not believe OBAMA will do anything to change the view there is around the world of us. What these two we have as presidents did was to show the world that even in america, powwer can make a country a banana republic with the "presidente" doing whatever he wanted. That is what Bush and Cheyne did. they came up and did what ever they wanted without regard of laws and jumping ocver the moral things we had keep dearly. We were an example of freedom in the world, a place where law is followed and abeyed even by the powerful. Things we dearly guarded. These two came alone and pushed all that aside and justified it as it happens in any "babana" republic. What the world saw?, a place insecure as any other banana republic for their business.
Think about it. Then our resume will not change, but if there is no investment from those that have the money, and even the investors from our country go somewhere else where their rights will be respected, we''ll have no jobs here to introduce our outstanding resumes.

[hungry1968]

you just posted that you dont know how it works.....you didnt answer my question... how will a different president improve your resume?

Posted by jamesm12341 at 11:45 AM : Apr 02, 2008





Where did I post that I didn''t know how the economy works?

And why should I update my resume?

[hungry1968]

boy you are bitter....what happened in your childhood that has made you so bitter in life?

Posted by jamesm12341 at 11:46 AM : Apr 02, 2008





Not my childhood - the last 7 years.

Particularly in watching China and Russia pass America as super powers, as the GOP has tried to decimate our country with all of their failed hidden agendas and nonsensical policies.

[perceptions5]

How do the Democrats expect to win in November when they only recognize 48 US states and the terrorities of Michigan and Florida.

So much for the olde sterotype "Count all the votes" which has been an "implied" smear against Republicans by the Democrats and they close corrupt liberal pals in our MSM wolfpack press.

Now for the FACTS.........the Democrat party "does not count all the votes".

Interesting how "perception" is completing different from "reality"..............well we can all thank our corrupt liberal MSM wolfpack press and their decades of liberal propaganda for that.

Really sad indeed.

[perceptions5]

How do the Democrats expect to win in November when they only recognize 48 US states and the terrorities of Michigan and Florida.

So much for the olde sterotype "Count all the votes" which has been an "implied" smear against Republicans by the Democrats and they close corrupt liberal pals in our MSM wolfpack press.

Now for the FACTS.........the Democrat party "does not count all the votes".

Interesting how "perception" is completing different from "reality"..............well we can all thank our corrupt liberal MSM wolfpack press and their decades of liberal propaganda for that.

Really sad indeed.

[danstoned]

John McCains health care plan is a continuation of the Republicon platform to encourage employers to drop their employee health care coverage. Estimated uninsured if McShame becomes president: 145 million Americans.

[perceptions5]

Particularly in watching China and Russia pass America as super powers, as the GOP has tried to decimate our country with all of their failed hidden agendas and nonsensical policies.


--------------------------------------------------------------------------------

Posted by hungry1968 at 11:49 AM : Apr

---------------------

hungry1968, you are one contaminated liberal dude. You''ve been hanging around and reading too much NYTimes and the CBS News website...........really sad

[hungry1968]

Now for the FACTS.........the Democrat party "does not count all the votes".

Interesting how "perception" is completing different from "reality"..............well we can all thank our corrupt liberal MSM wolfpack press and their decades of liberal propaganda for that.

Really sad indeed.

Posted by perceptions5 at 11:51 AM : Apr 02, 2008




That''s intelligent. Decry the democrats for NOT counting votes.

Did you happen to notice that Bush lost the 2000 election by over 540,000 popular votes?

Are you now going to challenge the GOP to change the electoral college system?

[bp5511]

Has anyone given thought to the fact that if all our service men and women come home from war sones they will need JOBS IN THIS COUNTRY???? Most of them are ready to become civilians again. UP and AWAY with the Unemployment rate again.

[perceptions5]

Are you now going to challenge the GOP to change the electoral college system?


--------------------------------------------------------------------------------

Posted by hungry1968 at

----------------------

good idea contaminated hungry1968. Let''s start that idea right away.

So now Hillary can be your nominee because she will probably end up with more of the "popular" vote and Staint Obama will have the most "electoral" votes.

So it''s Hillary as the Dem nominee............how does that sound with you hungry1968?