Merrill Lynch says recession is officially here

The financial company says last Friday’s employment report confirms an official recession. But, a regional Fed governor says he doesn’t think Fed head Ben Bernanke has much room to operate:

“I am concerned that developments on the inflation front will make the Fed's policy decisions more difficult in 2008,” Charles Plosser, president of the Federal Reserve Bank of Philadelphia said.

He was referring to the problems faced by the US Federal Reserve, which might want to cut interest rates to avoid a recession, but is worried about inflationary factors such as $100-a-barrel oil.

National Bureau of Economic Research president Martin Feldstein denied Merrill’s claims. No duh… another BushCo flunky trying to defend the throne.