US officially in recession
Wed, Oct 15, 2008
Reuters, AFP
NEW YORK - THE United States has entered a recession, the head of the San Francisco branch of the Federal Reserve, the nation's central bank, said on Tuesday.
'The recent flow of economic data suggests that the economy was weaker than expected in the third quarter, probably showing essentially no growth at all,' said Ms Janet Yellen in an address in Palo Alto, California.
'Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely,' she said. 'Indeed, the US economy appears to be in a recession.'
'By now, virtually every major sector of the economy has been hit by the financial shock,' Ms Yellen said in remarks prepared for delivery to Financial Executives International in Palo Alto, California.
Ms Yellen said she 'strongly supported' last week's coordinated interest rate cut by the Fed and other major global central banks, but did not indicate if she thought another cut was needed.
Financial markets suggest the Fed will lower its benchmark fed funds rate by one-quarter point at its Oct 28-29 policy meeting, to 1.25 per cent.
Inflation is retreating rapidly in line with falling energy and commodity prices and rising slack in the labor market, and could overshoot to the low side, Ms Yellen said.
'Some prominent forecasters at this stage are concerned that inflation in future years could decline to levels below what is consistent with price stability,' she said.
She is not a voting member of the interest-rate setting Federal Open Market Committee in 2008.
It's going to get worse for Singapore moving forward.
Wed, Oct 15, 2008
Reuters, AFP
NEW YORK - THE United States has entered a recession, the head of the San Francisco branch of the Federal Reserve, the nation's central bank, said on Tuesday.
'The recent flow of economic data suggests that the economy was weaker than expected in the third quarter, probably showing essentially no growth at all,' said Ms Janet Yellen in an address in Palo Alto, California.
'Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely,' she said. 'Indeed, the US economy appears to be in a recession.'
'By now, virtually every major sector of the economy has been hit by the financial shock,' Ms Yellen said in remarks prepared for delivery to Financial Executives International in Palo Alto, California.
Ms Yellen said she 'strongly supported' last week's coordinated interest rate cut by the Fed and other major global central banks, but did not indicate if she thought another cut was needed.
Financial markets suggest the Fed will lower its benchmark fed funds rate by one-quarter point at its Oct 28-29 policy meeting, to 1.25 per cent.
Inflation is retreating rapidly in line with falling energy and commodity prices and rising slack in the labor market, and could overshoot to the low side, Ms Yellen said.
'Some prominent forecasters at this stage are concerned that inflation in future years could decline to levels below what is consistent with price stability,' she said.
She is not a voting member of the interest-rate setting Federal Open Market Committee in 2008.
It's going to get worse for Singapore moving forward.
