Fed Official Predicts Slow Recovery
Americans should brace themselves for a slow recovery back to health after the recession ends, with unemployment likely to hit the double-digits, a Federal Reserve official said Friday.
Consumers here and abroad — fearful of losing their jobs or homes — likely will remain cautious spenders, said Richard Fisher, president of the Federal Reserve Bank of Dallas. “Under these conditions, I envision a slow recovery,” Fisher said in prepared remarks to a banking convention in San Antonio, Texas. “Not a V-shaped snapback — nor even a U-shaped one — but a very slow slog as we find a more sensible and sustainable mix between consumption and savings and investment.”
Looking at the current quarter, Fisher said he expects the “pace of decline will moderate.” The economy is “likely to bounce along the bottom for a while, perhaps punching through to positive growth as 2010 dawns,” he said.
…more…