According to a New York Times article published 2/12/08, the White House predicted on Monday 2/11 that the economy would escape recession.
Edward Lazear, Chairman of the White House Council of Economic Advisors stated “I don’t think we are in a recession right now, and we are not forecasting a recession”. Mr. Lazear went on to say that the plunge in housing and mortgage markets had yet to hit bottom and that growth would be low in the first half of 2008.
Administration officials are counting on the $168 billion economic stimulus package that passed Congress last week along with the Federal Reserve’s recent cuts in the short-term interest rates to stop the slide into recession and cause the economy to rebound sometime this summer. The administration forecasts that the economy will grow 2.7 percent this year. A number of economists think that economic growth will be more modest. Also, some economists are convinced that we are already in a recession while others disagree.
The Federal Reserve is predicting that the economy will escape a true recession (defined as a broad-based economic contraction in activity that lasts for at least two back-to-back quarters). However, the Fed is expecting a slower growth rate in 2008 than the administration is calling for.
Edward Lazear, Chairman of the White House Council of Economic Advisors stated “I don’t think we are in a recession right now, and we are not forecasting a recession”. Mr. Lazear went on to say that the plunge in housing and mortgage markets had yet to hit bottom and that growth would be low in the first half of 2008.
Administration officials are counting on the $168 billion economic stimulus package that passed Congress last week along with the Federal Reserve’s recent cuts in the short-term interest rates to stop the slide into recession and cause the economy to rebound sometime this summer. The administration forecasts that the economy will grow 2.7 percent this year. A number of economists think that economic growth will be more modest. Also, some economists are convinced that we are already in a recession while others disagree.
The Federal Reserve is predicting that the economy will escape a true recession (defined as a broad-based economic contraction in activity that lasts for at least two back-to-back quarters). However, the Fed is expecting a slower growth rate in 2008 than the administration is calling for.
President Bush remarked, in a letter sent to Congress following his report on the economy on Monday 2/11, “Americans should be confident about the long-term strength of our economy, but our economy is undergoing a period of uncertainty”.
William Poole, president of the St. Louis Federal Reserve Bank stated on Monday, “I think the best bet is that we will not have a recession”.
William Poole, president of the St. Louis Federal Reserve Bank stated on Monday, “I think the best bet is that we will not have a recession”.
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