Fed's Bernanke: inflation risks to the upside

NF Reporter · 11-28-2006, 01:40 PM

Reuters - The U.S. economy is poised to expand at a moderate rate and "uncomfortably high" core inflation should ease, but price risks are tilted mostly to the upside, Federal Reserve Chairman Ben Bernanke said on Tuesday.

More...

waltky · 10-01-2007, 11:29 AM

Big Al says inflation likely...

Greenspan warns of inflation
Sunday 30th September, 2007 - Speaking on the BBC over the weekend, former Federal Reserve chairman Alan Greenspan said the risk of a U.S recession had increased.

Quote:

Mr Greenspan warned that slowing housing markets and recent market turmoil sparked by a crisis in US sub-prime mortgages posed a greater threat to economic growth. But, he added that he did not anticipate a significant recession in the U.S or the U.K.

Mr Greenspan, who has predicted that inflation is set to rise in the longer term, said the days of low inflation are gone. Often criticised for cutting interest rates too quickly in response to signs of financial or economic weakness, he argued that central bankers have a tough task managing asset bubbles.

In the U.S, sales of new homes tumbled last month to their lowest annual level in over seven years. The increased supply of houses on the market is adding further downward pressure on prices.

Greenspan warns of inflation

waltky · 01-04-2008, 07:08 AM

Not lookin' good...

Economists: Recession odds rising
Thurs., Jan. 3, 2008 - Friday’s report on job growth could shed light on outlook for 2008

Quote:

After six years of uninterrupted growth, the outlook for the U.S. economy in 2008 has darkened considerably in just the past month. While many economists say it’s too soon to know whether a recession is coming, forecasters say the latest economic figures don’t look promising. “Obviously, the recession risk is rising sharply,” said David Wyss, chief economist at Standard & Poors. “We're getting to near even odds for recession in the first half of the year.”

Given the rapid pace of slowing since the sizzling 4.9 percent annual growth rate logged in last year’s third quarter, there is some speculation that the economy may already be slipping into a period of negative growth. Given the lag in the collection and analysis of economic data, it’s not unusual for a recession to be underway before statistics confirm it.

“If there’s going to be a recession, it’s entirely possible that we are in it — or just beginning it now,” said Nigel Gault, an economist at Global Insight. “We won’t know for a while. In two or three months, looking back from there to the December, January, February numbers, I think it will be evident by then whether or not we’ve entered a recession.”

Rising foreclosures and falling home prices have also put something of a damper on consumers, many who have funded a large portion of their spending in recent years with gains on the value of their homes. Coupled with the recent resurgence in energy prices, many consumers are feeling squeezed; any resulting slowdown in spending could also present the economy with a substantial headwind.

More Economists: Recession odds rising - Eye on the Economy - MSNBC.com