Fed Chairman Bernanke feels the outlook for economic activity is subject to considerable risk with downside risks probably outweighing those on the upside. One risk is the global nature of the slowdown which could adversely affect US exports and financial conditions to an even greater degree than currenctly expected. Another risk derives from the destructive power of the so called adverse feedback loop, in which weakening economic and financial conditions become mutually reinforcing. To break the adverse feedback loop, it is essential that the US continues to complement fiscal stimulus with strong government action to stabilize financial institutions and financial markets. If actions taken by the Administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability, and only if that is the case, in Benanke’s view there is a reasonable prospect that the currenct recession will end in 2009 and that 2010 will be a year of recovery.