Bernanke warns of possible US recession

While not using the ‘recession’ word, Bernanke warned US gross domestic product (GDP) could narrow in the first two quarters of the year, which would fit the assumed definition of a recession. “It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke told Congress earlier today. The chairman explained the recent Fed interest rate cuts and emergency lending facility had helped stabilise the situation, but he says financial markets remain under “considerable stress”. “We expect economic act...