Recovery threatened

THE US economy was in recession prior to September 11. The tragedy, from an economic view, could be seen as a “slightly positive development,” a leading economist said yesterday.

In the days following September 11, the world feared the tragedy would send the globe into a prolonged and deep recession, Friends First chief economist Jim Power said. It spurred people into actions which would not otherwise have been taken, he said.

“In response to those very justified concerns, a very strong official response was taken. The Federal Reserve, the European Central Bank and the Bank of England all slashed interest rates following September 11.