Analysts say that the central bank may also have to lower interest rates when its policy makers meet on 18 March.

The Federal Reserve has already slashed rates to 3%, from 4.25% at the beginning of the year to stabilise the world's biggest economy.

"The Fed is going to ease monetary policy - the question is how often and how fast," said David Resler, chief economist Nomura Securities International.

He insists we are not in recession because we are not in recession. We are most likely headed for calamity, but we are not in recession.