Bernanke sounds warning

Former US Federal Reserve chair Ben Bernanke, who won the Nobel Prize in Economics on Monday for his research on financial crises, urged policymakers to watch for any worsening of financial conditions around the world as pressures from war and currency fluctuations squeeze economies.

"Even if financial problems don't begin an episode, over time, if the episode makes financial conditions worse, they can add to the problem and intensify it, so that's something I think that we really have to pay close attention to," Bernanke said during a press briefing at the Brookings Institution in Washington.

Besides, the US central bank's former vice chair Alan Blinder forecast that the US is probably headed for a recession but it's likely to be a mild one.

Bloomberg