|
(CEP News) - Philadelphia Federal Reserve President Charles Plosser (voter) said he expects growth in the U.S. economy to be anemic well into the first half of 2009.
Speaking in Philadelphia, Plosser said he expects positive momentum to resume in the second half of 2009. Plosser also said that the Federal Reserve will address the Fed funds target issue. The excess liquidity that the Fed put into the system has had the unintended effect of lowering the rate below the Fed's target of 1%. Plosser reiterated that the Fed remains committed to low and stable inflation, adding that it would be unlikely to see inflation expectations rise in the near term. He also said that he was "not too concerned" about the threat of deflation. Plosser declined to comment on the question of whether Citigroup was too big to fail. By Steve Stecyk,
This email address is being protected from spam bots, you need Javascript enabled to view it
, edited by Nancy Girgis,
This email address is being protected from spam bots, you need Javascript enabled to view it
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer. |
