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| Version 1 | Version 2 |
|---|---|
| Fed boss warns of growth 'risks' | Fed boss warns of growth 'risks' |
| (20 minutes later) | |
| The boss of the US Federal Reserve Ben Bernanke has warned that there are still "downside risks" to growth in the world's largest economy. | The boss of the US Federal Reserve Ben Bernanke has warned that there are still "downside risks" to growth in the world's largest economy. |
| He also said that "upside risks" to inflation had intensified recently. | He also said that "upside risks" to inflation had intensified recently. |
| President Bush said the economy was "remarkably resilient" but urged Congress to pass legislation to help homeowners as soon as possible. | |
| He defended plans to help mortgage firms Fannie Mae and Freddie Mac but denied they were being bailed out. | |
| Plans to offer the mortgage institutions access to fresh credit were necessary to stabilise the mortgage market and boost confidence, President Bush said. | |
| However, he stressed that the two firms should remain shareholder owned. | |
| President Bush and Ben Bernanke's comments came as problems in the US housing market have weighed on the wider economy, slowing consumer spending and boosting recession fears. | |
| The US is not alone in dealing with the problems, and the UK is wrestling with slower growth and quickening inflation. | The US is not alone in dealing with the problems, and the UK is wrestling with slower growth and quickening inflation. |
| Central bankers are having to juggle a number of problems and analysts said that accelerating consumer price growth may mean they are unable to cut interest rates to stoke up growth. | Central bankers are having to juggle a number of problems and analysts said that accelerating consumer price growth may mean they are unable to cut interest rates to stoke up growth. |
| Earlier this month, the Fed left its main interest rate unchanged at 2%. The Bank of England left its main interest rate unchanged at 5%. | Earlier this month, the Fed left its main interest rate unchanged at 2%. The Bank of England left its main interest rate unchanged at 5%. |
| "The Fed's having a difficult time, as are most other central banks, as to what the next move should be," said Dustin Reid of ABN Amro. | "The Fed's having a difficult time, as are most other central banks, as to what the next move should be," said Dustin Reid of ABN Amro. |