Bernanke's first economic recession that the United States consumer confidence blow.

Federal Reserve (Fed) Chairman Ben Bernanke on Wednesday said publicly that the U.S. economy might fall into recession. .This is Bernanke slowdown in economic growth since the first time since the United States to make such representations, but he also said the U.S. economic situation should be improved in the second half, suggesting that the Fed need to introduce more stimulative monetary policy. .<P> Reign as the current Fed chairman, Bonan Acton Cheng Meiguo economy may decline, which is confidence in the market as good as a heavy blow, after the White House and the Fed likely to boost confidence in the efforts of all the wasted, even if these efforts .is also not seen much results. .</ P> <P> "The Wall Street Journal" reported that Bernanke told the U.S. Congress Joint Economic Committee, it now appears, in the first half of 2008 real gross domestic product (GDP) growth may be small, and may even shrink. .</ P> <P> general definition of a recession is two consecutive shrinking GDP, although the National Bureau of Economic Research's official calculation more complex. .</ P> <P> Bernanke said, assuming that the housing and credit markets stabilize, and recent implementation of the economic stimulus package to boost the level of spending, the U.S. economy is expected to appear later this year to improve. .But Bernanke told lawmakers that the larger the uncertainty of the expected, but downside risks remain large. .</ P> <P> the United States on Wednesday also announced in February factory orders showed a second consecutive month, down 1.3%, more than originally expected. .Including durable goods orders fell 1.1%. .</ P> <P> However, the U.S. job market appears to be signs of improvement. .According to the U.S. ADP private employment service said in March the U.S. private sector unexpectedly added 8,000 jobs, albeit small, but compared to February by 1.8 thousand people, has been significant progress. .Wall Street was originally predicted in March decreased by 4.8 million in private employment. .But many economists believe that Friday's March employment will be reduced. .Bernanke said on Wednesday that the historical status is still in the unemployment rate should rise in the coming months. .</ P> <P> Bernanke said concerns about employment and income and housing values decline and credit deterioration of the environment common cause significant consumer spending was weaker than the strong levels of last year, while business investment plans affected. .</ P> <P> Bernanke said that to curb the trend of economic slowdown, the Fed has taken measures to cut interest rates sharply. .Current federal funds rate is only 2.25%, since last September has been full since reduced by 3 per cent. .He said a series of activities and interest rate cuts to boost the efforts of the credit market liquidity would help to promote economic growth and reduce the risk of economic activity. .He added that economic and financial markets have undergone the necessary adjustments. .</ P> <P> worth mentioning is that Bernanke has repeatedly in recent months to ensure that the Fed will take timely action when necessary to support economic growth, but in his speech Wednesday did not mention it .. .This may indicate the eyes of Ben Bernanke, the Fed has little room to cut interest rates, not to mention Bernanke that inflation is still a risk. .He said that food and energy prices increase inflationary pressures, the dollar weakened against other major currencies as well. .However, he believes inflation will be eased in the next few quarters. .</ P> <P> often Bernanke testimony to Congress, but the testimony on Wednesday was different, because before, the Fed had three major events: the Federal Reserve slashed rates last month to boost the economy of 0.75 PCT .; Federal Reserve shot to help JPMorgan Chase acquire Bear Stearns; Monday the Ministry of Finance released a blueprint for reform, according to the plan, the Fed will eventually be granted the unprecedented financial market regulation and responsible power. .</ P> <P> Bernanke as Federal Reserve on Wednesday defended the aid of Bear Stearns, but he also admitted that the move to increase the public decision-making difficult. .Bernanke said Bear Stearns in March 13 issued a warning, if you can not get funding, Bear Stearns will be forced to file for bankruptcy. .Bernanke said that this loss will be huge and very difficult to control. .</ P> <P> He said that the Federal Reserve to take other measures to boost liquidity seems to help ease the pressure on financial markets, including repurchase agreements, these initiatives as well as the new primary dealer credit tendering arrangements .. .However, he said, the market is still under high pressure, the credit crisis has spread to municipal bonds, student loans and institutions to support securities markets. .</ P>.