Business | Economy

Channel Sponsor

Greenspan expects at least 50% possibility of US recession

The likelihood of the US economy slipping into recession is at least 50 per cent, former Federal Reserve Chairman Alan Greenspan was quoted yesterday as saying.

  • Reuters
  • Published: 01:28 January 31, 2008
  • Gulf News

Berlin: The likelihood of the US economy slipping into recession is at least 50 per cent, former Federal Reserve Chairman Alan Greenspan was quoted yesterday as saying.

"I believe the probability of a recession is at least 50 per cent, but up to now there are few signs that we are already in one," Green-span said in an interview with weekly newspaper Die Zeit. "In my opinion, it will probably happen but the facts suggest we are not there yet."

Asked whether central bankers and financial policymakers could head off a US recession, Greenspan said: "Probably not. Global economic influences today are stronger than almost anything that monetary or fiscal policy can counter them with."

"Long-term real interest rates have significantly more influence on the core of the economy than decisions by national governments," he added. "And central banks have increasingly lost the ability to influence these long-term rate."

Debate

Meanwhile, an economic stimulus package worth an estimated $150 billion aimed at shoring up faltering US growth cleared the House of Representatives on Tuesday, but faced more debate in the Senate.

The bill, which came from a compromise between the White House and bipartisan leaders in the House, won approval by a margin of 385-35.

The measure calls for tax rebate cheques sent to households in an effort to stimulate consumer spending along with business tax breaks.

President George W. Bush praised House members and urged the Senate to quickly follow suit without tinkering with the bill.

But Senate leaders on Monday proposed their own version of an economic stimulus programme.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Economy

  1. Gold at new high as dollar slides, stocks gain

  2. Experts urge fresh thinking on dollar peg

  3. Gulf surplus likely to hit $1 trillion

  4. UAE economy could expand 5% in 2010

All articles in Economy

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice