The probability of the US economy slipping into recession has increased recently but is still less than 50/50, according to former Federal Reserve chairman Alan Greenspan.
Speaking on BBC Radio 4, he also said that the US and UK housing markets are likely to slow due to the recent financial market turmoil, perhaps even contracting, although he doesn't anticipate a "significant" recession.
Mr Greenspan, often criticised for slashing interest rates rates too quickly in response to signs of financial or economic weakness, said central bank policymakers face a tough task in managing asset bubbles resulting from lower interest rates.
"It's the consequence of . . . a dramatic decline in real interest rates. It's really not something which central banks any longer have control over."