Zollars: 'Parts of U.S. economy may be in recession'

Parts of the U.S. economy may already be in recession and the U.S. Federal Reserve should cut rates by up to 50 basis points to boost economic growth, the top executive of North America's largest trucking company said on Friday.
"We may already have parts of the economy that are in recession," Bill Zollars, Chief Executive of YRC Worldwide Inc., told Reuters in a telephone interview. "I think the Fed needs to do more to help boost the economy."
"They should cut rates by at least a quarter point, or a half point," he added.
Last month Zollars told Reuters that he thought the U.S. economy faced a "more than 50-50 chance of a recession."
"We are pretty much in the same downward trajectory right now," he said on Friday. "Regardless of what you call it, it's pretty tough out there for a lot of people right now."
Overland Park, Kansas-based YRC is a less-than-truckload operator. Less-than-truckload companies consolidate smaller loads into a single truck.
The U.S. trucking sector has struggled with declining freight volumes since the third quarter of 2006. Some analysts and truck company officials say the sector is in the midst of a "freight recession."
As well as slowing economic growth, the industry has been hurt by the housing slowdown, declining auto sales by U.S. domestic automakers and lackluster retail sales.
Oil's rise to nearly $100 a barrel has not helped trucking companies or their clients.
"The price of oil is really hurting our customers right now," Zollars said.
Like many transportation companies, YRC passes on higher fuel costs to customers via fuel surcharges.
With all these headwinds, Zollars said, "It's not clear when this (U.S. economic growth) is likely to turn around."
In trade on Nasdaq YRC shares were trading up 14 cents at $16.67.
YRC hit a 52-week high of $47.09 on Feb 22. The shares reached a 52-week low this Wednesday of $15.87.