-
Feldstein says chance of US recession now 'probably over' 50 pct
NEW ORLEANS (Thomson Financial) - The chances of a recession in the US economy are likely above 50 pct after this morning's employment report, said Harvard economics professor Martin Feldstein. He was already predicting a 50/50 chance before today's report, but now 'I'm probably over, I'm probably over,' he told Thomson Financial News on the sidelines of the American Economics Association meeting here. Feldstein said he was 'not expecting' a 5 pct reading on the unemployment rate. 'It says that consumer confidence will be weaker, that household income will be lower, it says that consumer spending won't grow as fast, so I think it increases the risk of very slow growth or an actual downturn in 2008,' he said. And he said it reinforces the case he's already presented for an economic stimulus package from Washington. A White House spokesman said today he is 'not ready to say' whether the Bush administration will introduce an economic stimulus package, although President George Bush said he is considering one that could be announced around the time of his State of the Union address on January 28. [email][email protected][/email] dem/wash/wash/lht COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.