Federal Reserve Board Gov. Martha Seger said today the greatest immediate danger to the economy is the possibility of recession.
"The immediate problem is to keep our economy from going into a recession," she said when asked in an interview on the NBC "Today" show what might be the greatest immediate danger to the economy.
Seger, who said she has sometimes been a lonely voice for the lowering of interest rates on the seven-member Federal Reserve Board, said the board may have waited too long before acting. It has eased credit twice this month by pushing money-market rates lower.
"At this stage it would be very easy to slide into a recession, because the consumer's tapped out," she said.
She said the slowdown began in automobiles and housing and spread to manufacturing and other areas.