Former US Federal Reserve Chairman Alan Greenspan said while addressing an analyst's business conference that a recession in the US is possible, though not probable this year as excess inventory is being reduced quickly.

"By the end of the year, there is the possibility, but not the probability of the US moving into recession,' Greenspan is believed to have told the analysts. There are specific housing and general inventory excesses that are being addressed quickly, but need to be carefully monitored, he said.

Greenspan's address came three days after he said a US recession was possible this year in part because slowing growth in profit margins suggests the expansion might be winding down.

He acknowledged that most economists aren't predicting a recession.

Greenspan's successor Ben S. Bernanke, told Congress yesterday that the Fed still expects the economy to pick up later this year.