US Treasury Secretary Henry Paulson said today the American economy had turned down sharply, but declined to label the current situation a recession.
"We know we're in a sharp downclimb and there's no doubt that the American people know that the economy has turned down sharply. So to me much less important is the label that's placed on it today. Much more important is what we do about it."
He said the Treasury was "all over" the turbulence in capital markets and said he does not think Bear Stearns shareholders believe they have been bailed out by the Federal Reserve.
"The big focus on the part of all policy makers is to minimize the spillover to the real economy. We need to keep our capital markets stable, functioning well."