Former Fed chief says U.S. now in recession

SINGAPORE (Reuters) - Former Federal Reserve Chairman Paul Volcker said on Tuesday the U.S. housing market faced more losses and the world's biggest economy was now in recession. Volcker, credited for battling double-digit inflation in the 1970s, said the priority for U.S. authorities in the credit crisis is to stabilize the financial system even though that means heavy government intrusion. "The first priority is to stabilize the financial system. It is necessary even though the cost involved is heavy government intrusion in markets that should be private," he said in a speech at a seminar in Singapore. "House prices in the U.S. are still declining. There are still more losses to come... [read full story]