Featured, News - Thursday, February 14, 2008 11:42 - 0 Comments

Paulson, Bernanke: No recession in ‘08

NEW YORK (CNNMoney.com) — Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson both acknowledged problems in the U.S. economy on Thursday, but both said they believe the nation will avoid falling into recession.

In prepared testimony before the Senate Banking Committee, the head of the central bank and the Bush administration’s point man on the economy said that steps taken already this year will be able to keep the economy moving forward despite the continued downturn in housing and troubles in credit markets.

“At present, my baseline outlook involves a period of sluggish growth, followed by a somewhat stronger pace of growth starting later this year as the effects of monetary and fiscal stimulus begin to be felt,” said Bernanke in his opening statement, referring to a series of Fed interest rate cuts and a $170 billion tax rebate and stimulus plan signed by President Bush Wednesday.

Full story at CNN Money