Fannie Mae economist says recession risks remain
A government report showing a rise in September payrolls is not enough to stifle the risk of a new recession, according to Doug Duncan, chief economist Fannie Mae. The Labor Department reported Friday the economy added 103,000 jobs in September, which includes the return of 45,000 Verizon Communications (VZ) workers who were on strike in August. Duncan acknowledged Friday that "today's employment headlines were modestly better than market expectations." He said other economic indicators, which remain in positive territory, are not strong enough to lift consumer confidence, making the risk of another recession more likely. "Our September National Housing Survey, to be released on Monday, is expected to show that households are still very pessimistic about the direction of the economy, home prices, and their own personal finances, giving them no compelling reasons to buy homes," Duncan said. "Overall, the employment situation continues to point to a distressed housing market and a continued decline in the homeownership rate," he said. Write to Kerri Panchuk.