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BY MALLORY PERRYMAN

The latest economic progress report is out- renewing speculation that the U.S. should prep for the second dunk of a double dip recession.

Here are the numbers from The New York Times:

“The government lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, after originally reporting last month that growth in the three-month period was 2.4 percent.”

As the economy sputters along, experts keep crunching numbers-- an editor for The Wall Street Journal reports, the math and the promise of “economic recovery” don’t add up.

Brenda Cronin: “I think this is our first sign that a double dip recession is a real possibility than a remote one. Many economists were expecting at least a one-percentage point decline from the 2.4%; however, the factors that are dragging down the GDP remain in tact.”

But CNN’s chief business correspondent Ali Velshi says-- slowdown doesn’t equal recession.

“Now 1.6% means 1.6% more than before so it’s growth. It’’s not that we’re not growing, its that we’re growing slower and do we think we’ve slowed down even more, that’s what the worry is.”

Shortly after the new numbers hit the press, Federal Reserve Chairman Ben Bernanke did as well-- touting the message that the Fed is ready to rush to the rescue if things get much worse.

According to a blogger for Barron’s, Bernanke’s speech wasn’t exactly shocking, but it did reveal the Feds are willing to make some unorthodox moves. Among them...

“Buying more long-term securities...change the way it talks about its intentions with respect to the fed funds rate...and lower the interest paid on banks’ deposits with the Fed.”

CNBC’s Steve Liesman breaks down Bernanke’s stance-- saying for now-- the Fed is sticking to the sideline, hoping it doesn’t have to check in to the game.

Steve Liesman: “So on the one hand if the economy deteriorates further Bernanke indicated a greater willingness to use those tools. On the other hand, he doesn’t really indicate that those tools will be necessary because the recovery is in place.”

Bernanke did not change his optimistic outlook for 2011, a move Melissa Francis tells MSNBC -- kept the market in tact. But in the same breath, she added-- analysts are questioning the Fed’s economic oomph.
 
“A lot of people wonder how effective anything else they do might be and is it just brave talk from Ben Bernanke? We don’t know. I guess we won’t really know until he tries.”

So what you do think? Is a double dip inevitable? And if so...should the Fed be doing more to jump start the sluggish economy?

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