Beranke Warns of Recession

Federal Reserve Chairman Bernard Bernanke in remarks before the Joint Economic Committee, said that a recession is "possible:"Bernanke's testimony 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...(Read Full Post)