Business

Recession in the USA?
by Barbora Kasparova

The Chairman of the U.S. Federal Reserve System addressed the Joint Economic Committee of the U.S. Congress on Thursday the 8th to present an update on the economic situation of the country. Situation, that is of a major concern of the economist and even considered alarming. The U.S. is facing the increased oil prices as well as the falling value of the dollar, which are one of the reasons of the inflation threat. Some economist state the current situation strongly reminds them of the 1970 oil crisis, and even fear the U.S. economy might fall into recession. Major U.S. companies, such as General Motors and Citicorp have announced great losses in recent days. In his speech on the Development on the Financial markets, Ben Bernanke noted that the "economy has performed reasonably well" since his last address, and further he dealt with the problems with subprime mortgages. On the topic of the Federal Reserves Policy Action, he commented on the steps FED took to help the market, such as cutting down the discount rates. He amitted, that the third quarter economy growth at a 3.9 rate is not likely to be sustained, as stated by the FOMC (Federal Open Market Committee), and according to this speech: "The FOMC will continue to carefully assess the implications for the outlook of the incoming economic data and financial market developments and will act as needed to foster price stability and sustainable economic growth" (http://www.federalreserve.gov/newsevents/testimony/bernanke20071108a.htm).

related story: http://news.yahoo.com/s/ap/20071108/ap_on_bi_ge/bernanke_economy;_ylt=AmSrLd_zTbL2f_63o2.vvPes0NUE

by Barbora Kasparova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 3:42 PM