Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Economists See Rising Risk of Recession

Nearly all in survey say Fed must take strong action, cut rates

By Jim O'Neill, Newser User

Posted Dec 11, 2007 6:59 AM CST

(Newser) – Economists are painting a bleak picture of the US economy next year, with the housing mess, reduced job growth, and rising unemployment putting the likelihood of recession at its highest level in three years, the Wall Street Journal reports. Nearly all the economists surveyed by the paper said the Fed must take strong action to support recovery.

The Fed, said one, should act to “avert risk of recession and stabilize the financial crisis." Of 52 economists, 88% say the Fed needs to cuts rates today. The 52 economists surveyed say the potential for recession is 38%, up from 33.5% in November. The group also said Rudy Giuliani (35%) would be best for the economy, followed by John McCain (19%).

Trader Michael Scagnelli bites his fingernail as he works on the floor of the New York Stock Exchange, Monday, Dec. 10, 2007. Wall Street advanced Monday as expectations for an interest rate cut from... (Associated Press)

A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver in this Aug. 29, 2007 file photo. The Bush administration has hammered out an agreement with industry to... (Associated Press)

Federal Reserve Chairman Ben Bernanke speaks at the 2007 Charlotte Chamber annual meeting in Charlotte, N.C. on Thursday, Nov. 29, 2007. (AP Photo/Nell Redmond) (Associated Press)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

'Formidable Headwinds' Hinder Recovery: Bernanke

Weak credit and labor markets mean recovery will be slow: Fed chair

(NEWSER) - Ben Bernanke painted a stark picture of the economy today, warning that "formidable headwinds" are working against the incipient recovery. Despite an unexpectedly positive jobs report, the pace of expansion is likely to remain "moderate," the Fed chair said. “Despite the general improvement in financial conditions, credit remains tight for many borrowers,” and the job market “remains weak,” Bernanke said in a speech to the Economic Club of Washington. More»

'Massive' Asset Purchases Likely Loom for Bernanke

Fed expected to step up purchase of mortgage securities

(NEWSER) - The Federal Reserve is expected to step up its buying of mortgage securities after policymakers meet today and tomorrow, Bloomberg reports. The outlook for the economy and job market has gotten bleaker since the Federal Open Market Committee last met 6 weeks ago and analysts believe Ben Bernanke is likely to announce more aggressive action to tackle deflation and boost the Fed's balance sheet. More»

18% of US Wealth Up in Smoke Last Year

Fed figures show $11 trillion was wiped out Americans' net worth last year

(NEWSER) - Last year's stock market and housing slumps wiped out nearly a fifth of the wealth of American families, the Wall Street Journal reports. The Federal Reserve announced yesterday that $11 trillion—more than the output of Britain, Germany and combined—was erased from the net worth of households in 2008, the biggest loss since it started keeping records. More»

US Drops 80,000 Jobs, Biggest Loss in 5 Years

Non-farm payrolls fall 80,000 in March, biggest drop in five years

(NEWSER) - Unemployment surged in March to 5.1%, the worst it’s been since September 2005, reports the Wall Street Journal. The country lost 80,000 non-farm jobs last month after dropping 76,000 jobs in both January and February. The third sharp drop fuels fears that the US has slipped into a recession and may prompt another interest rate cut by the Fed. More»

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

(NEWSER) - Ben Bernanke for the first time acknowledged the possibility of a US recession, but he also voiced optimism that “much” of the adjustment period was over, the Wall Street Journal reports. His testimony before Congress seemed to suggest an end to aggressive stimulus measures—noting that rates had already been cut “substantially” and inflation was still a “source of concern.” More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Economists See Rising Risk of Recession

Nearly all in survey say Fed must take strong action, cut rates

OTHER STORIES ON OUR RADAR

Federal Reserve • recession • US economy

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

'Formidable Headwinds' Hinder Recovery: Bernanke

Weak credit and labor markets mean recovery will be slow: Fed chair

'Massive' Asset Purchases Likely Loom for Bernanke

Fed expected to step up purchase of mortgage securities

18% of US Wealth Up in Smoke Last Year

Fed figures show $11 trillion was wiped out Americans' net worth last year

US Drops 80,000 Jobs, Biggest Loss in 5 Years

Non-farm payrolls fall 80,000 in March, biggest drop in five years

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Economists See Rising Risk of Recession

Nearly all in survey say Fed must take strong action, cut rates

Bookmark & Share

OTHER STORIES ON OUR RADAR

Federal Reserve • recession • US economy

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

'Formidable Headwinds' Hinder Recovery: Bernanke

Weak credit and labor markets mean recovery will be slow: Fed chair

'Massive' Asset Purchases Likely Loom for Bernanke

Fed expected to step up purchase of mortgage securities

18% of US Wealth Up in Smoke Last Year

Fed figures show $11 trillion was wiped out Americans' net worth last year

US Drops 80,000 Jobs, Biggest Loss in 5 Years

Non-farm payrolls fall 80,000 in March, biggest drop in five years

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?