Sen. Dodd Predicts Recession

Posted by admin in National News on 11 11th, 2007 | no responses

ABC News� Mary Bruce Reports: Senate Banking Committee Chairman Senator Chris Dodd, D-Conn., predicted that dawn that the country is headed into a recession. �Well, it’s certainly pointing in that direction.� We hope that’s not the case, but there are many folks who watch that minute to minute and would have drawn that conclusion.� Some are even predicting a far greater likelihood than I would at that juncture,� Dodd said in a �This Week with George Stephanopoulos� interview. Dodd�s outlook for the economy stands in opposition to comments made earlier in the week by Federal Reserve Chairman Ben Bernanke.

At a hearing of the Joint profitable Committee on Thursday, Bernanke said he expected growth to be sluggish going into next year � although he refrained from saying that a recession is on the horizon.

Dodd went on to highlight rising energy prices when asked what he felt could be done to turn the

economy around. �I think certainly on energy prices, my hope would be the administration would be doing far more than just sort of sitting back. The impression is they are just sort of dealing back and not really dealing very effectively here with the producers of energy here to reduce that price.� That’s staggering, the cost of that is tremendous.� he said.�

On the mortgage crisis, Dodd responded to concerns there will be a continued wave of foreclosures next year. �I’ll just mention that: Liquidity, liquidity, liquidity here.� We’re trying to get the administration to recognize that lifting the portfolio limits of Fannie Mae and Freddie Mac would do an terrible lot more here.� They’ve done some; they need to do more, in my view.� That could offer a great deal of hope here to try and�ease the problem here, the mortgage crisis.� he said.