the following warning was made on sept1, last year
Feldstein Warns of Recession, Makes Case for Rate Cut
Sept. 1 (Bloomberg) -- Harvard University economist Martin Feldstein said the U.S. housing-market recession threatens to sink the broader economy, and the Federal Reserve can cut interest rates without abandoning its goal of price stability.
"The economy could suffer a very serious downturn,'' Feldstein, president of the group that dates U.S. recessions, told a Fed conference in Jackson Hole, Wyoming. "A sharp reduction in the interest rate, in addition to a vigorous lender-of-last-resort policy, would attenuate that very bad outcome.''
