Posted on 07/01/2009 3:46:37 AM PDT by Red in Blue PA
The U.S. recession is likely to end later in 2009, ushering in a "frustratingly slow" recovery marked by continued high unemployment, a top Federal Reserve official said on Tuesday.
Janet Yellen, president of the San Francisco Fed, looked for inflation to stay low for several years, and hinted that the central bank should be in no hurry to raise interest rates even once growth turns positive.
"I am not optimistic that the economy will spring back to normal anytime soon," Yellen told the Commonwealth Club of California in San Francisco.
The U.S. jobless rate is likely to rise from its current level, and it could take several years to return to full employment, Yellen said -- a period that could intensify downward pressure on wages and prices.
In her first extended remarks on the economy since early May, Yellen said that undesirably low inflation was the biggest issue on the medium-term horizon.
"I'll put my cards on the table right away. I think the predominant risk is that inflation will be too low, not too high, over the next several years," she said. "I expect core inflation will dip to about 1 percent over the next year and remain below 2 percent for several years."
(Excerpt) Read more at cnbc.com ...
Really? And this person is an economist who supoosedly follows the growth of money supply?
Unbelievable.
HA!!!!
We are somewhere near half way to the bottom....this is no recession folks.
look in my crystal ball............
This is a DEEPression.
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