Bernanke admits US recession is possible

Ben Bernanke, chairman of the US Federal Reserve, has admitted that an American recession is possible.

Though the Fed has spent the past couple of months trying to stave off a mass economic downturn using short-term auctions and other financial policy instruments to inject liquidity into the market, it seems it’s not having the desired effect.

In a speech to Congress yesterday Bernanke says: “Although our recent actions appear to have helped stabilize the situation somewhat, financial markets remain under considerable stress.”

When asked to clarify his comments and whether recession is possible he adds: “Recession is possible… it’s clearly a period of very slow growth… we are trying to set our policies appropriately for that situtation.”