Greenspan: Less than 50% Chance of Recession

The probability of the U.S. economy slipping into recession has increased recently but is
still less than 50/50, former Federal Reserve Chairman Alan Greeenspan said in comments broadcast on Friday.

"The danger of recession has obviously risen but in my judgement ... is still less than 50/50. It's less (a) optimistic (prognosis) than one would like," Greenspan told BBC Radio 4.

He also said that the U.S. and UK housing markets are likely to slow as a result of the recent financial market turmoil, perhaps even contracting, although he doesn't anticipate a
"significant" recession.

Greenspan, often criticized for slashing interest rates rates too quickly in response to signs of financial or economic weakness, said central bank policymakers face a tough task in managing asset bubbles resulting from lower interest rates.

"It's the consequence of ... a dramatic decline in real interest rates. It's really not something which central banks any longer have control over.