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Recession Fears Overblown: Economists

Fed's actions key strong economic reports, signs of market recovery

By Jim O'Neill, Newser User

Posted May 14, 2008 9:50 AM CDT

(Newser) – A growing number of economists are saying, cautiously, that the US might have pulled back from the brink of recession, the Wall Street Journal reports. The experts credit swift action by the Federal Reserve to lower interest rates and save Bear Stearns in March, and even the ongoing distribution of fiscal-stimulus checks, as catalysts for the detour.

"A couple months ago it seemed like we were on the abyss," one economist said. "Things have changed.” Experts cite improvements in the stock and credit markets and several surprisingly strong economic reports as evidence things aren’t as bleak as expected. But, they warn, the still-sluggish economy could still slip into a prolonged, shallow downturn.

A cashier rings up groceries at a Chicago supermarket Monday, May 12, 2008. Food prices have continued to rise. (AP Photo/Charles Rex Arbogast)

A motorist fuels up as gas prices hover well above the $4-a-gallon mark in Half Moon Bay, Calif. (AP Photo/Marcio Jose Sanchez)

The stock market has show signs of a rebound. (AP Photo/Henny Ray Abrams, file)

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Recession Fears Overblown: Economists

Fed's actions key strong economic reports, signs of market recovery

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Economy in 'Sharp Decline,' Paulson Admits

He won't say recession, but treasury secretary comes close

Bernanke Looks Impotent as Fed's Fixes Fail

Economic woes may be beyond cure by monetary medicine

Bernanke Tosses Out His Rule Book

As Wall Streets meltdown accelerates, the Fed chief adapts on the fly

Economists Lean Closer to the R-Word

Almost half on US panel predict recession, up from 25% last year

Bernanke: We're Prepared to Dole Out More Stimulus

Says he expects more job creation once 'temporary shocks' pass

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Recession Fears Overblown: Economists

Fed's actions key strong economic reports, signs of market recovery

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OTHER STORIES ON OUR RADAR

stock market • Federal Reserve • Bear Stearns • recession • credit market • consumer prices • economic stimulus package

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Economy in 'Sharp Decline,' Paulson Admits

He won't say recession, but treasury secretary comes close

Bernanke Looks Impotent as Fed's Fixes Fail

Economic woes may be beyond cure by monetary medicine

Bernanke Tosses Out His Rule Book

As Wall Streets meltdown accelerates, the Fed chief adapts on the fly

Economists Lean Closer to the R-Word

Almost half on US panel predict recession, up from 25% last year

Bernanke: We're Prepared to Dole Out More Stimulus

Says he expects more job creation once 'temporary shocks' pass

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?