'Awfully pale US recession likely to last through year'

New York: Former Federal Reserve Chairman Alan Greenspan said the US has slipped into an "awfully pale recession" and may continue to languish for the rest of the year.

"We are clearly receding," with economic growth now at about zero per cent, he said in an interview with Bloomberg News. Greenspan, who now consults for clients including Deutsche Bank AG, also said it was too soon to declare the end to the credit crisis stemming from the collapse in the subprime mortgage market.

The former Fed chief's assessment echoes figures in the past month that show declines in manufacturing and housing industries, though fewer job losses than economists forecast.

Greenspan's successor, Ben S. Bernanke, and his colleagues indicated last week they are ready for a pause in interest-rate cuts after seven reductions since September.