Volcker doesn’t expect another recession soon.

However, in testimony before the House Banking Committee, Federal Reserve Board Chairman Paul A. Volcker said that a soaring trade deficit put the United States in a “difficult and dangerous situation” and could, if not corrected, topple the country into a recession. Volcker repeated a plea he made last week before the Senate Banking Committee for America’s major trading partners--Japan and Western Europe--to do more to stimulate their growth rates in order to expand markets for U.S. products.