US now officially in recession

Published: 14 Oct 2008 18:22:49 PST

NEW YORK - THE United States has entered a recession, the head of the San Francisco branch of the Federal Reserve, the nation's central bank, said on Tuesday.

'The recent flow of economic data suggests that the economy was weaker than expected in the third quarter, probably showing essentially no growth at all,' said Ms Janet Yellen in an address in Palo Alto, California.

'Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely,' she said. 'Indeed, the US economy appears to be in a recession.' -- AFP