Former Fed Chief Says U.S. Now in Recession

When I first read this I thought duh? But it is news that former Federal Reserve Chairman Paul Volcker has said that the U.S. economy is in recession. He went on to say that the priority for U.S. authorities in the credit crisis needs to be stabilizing the financial system even though this would mean heavy government intrusion.

Volcker is credited for battling double-digit inflation that flared in the 1970s. He was a chairman of the U.S. central bank between 1979 and 1987, before handing the reins over to Alan Greenspan, and oversaw a sharp increase in interest rates to quell the price pressures.

Volcker is currently the chairman of the board of trustees of the Group of 30, an international body composed of central bank governors, leading economists and private financial sector experts.