03/28/2008 02:45 am ET | Updated May 25, 2011

Fed President "Not Confident" Recession Avoidable

San Francisco Federal Reserve Bank President Janet Yellen on Thursday indicated a willingness to cut U.S. interest rates further and said she was "not confident" a recession can be avoided this year.

Speaking to reporters after an event in Honolulu, Yellen said an extended spell of slow economic growth was the most likely outcome, but that a recession -- two quarters of negative growth -- was within the range of forecasting error.

"Current indicators point to continued anemic growth for at least the first half of this year," Yellen said on a panel discussion at the Chartered Financial Analysts of Hawaii economic forecasting dinner.

The Fed's job is to mitigate the downside economic risks that are now evident, which have made a recovery from the 2007 global credit crunch harder, she said.

Read more on Reuters Via CNBC