Minneapolis Fed's Kocherlakota: Recovery Will Be Slow (Duh)
Hey look, Minneapolis Fed's new fearless leader has finally opened his mouth. I'm not impressed but I'll carry it anyway just because, well, I don't really have anything better to do except get on a flight later this afternoon.
The U.S. economy will likely grow at a pace of close to 3 percent over the next two years, slower than many private-sector economists forecast, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said on Tuesday.
While a recovery from the worst downturn since the 1930s is underway, the outlook is clouded by regulatory uncertainty and a still-weak banking sector, Kocherlakota said in the prepared text of his first public speech since his appointment to the top job at the regional Fed bank last September.
"I do think that the economy is on the mend and should continue to recover over the next two years -- in terms of both GDP and unemployment -- but at slower rates than we would like," Kocherlakota told a group of bankers in St. Paul, Minnesota.
Unemployment is unlikely to fall below 9 percent this year or 8 percent next year, he said.
"To get a true expansion in employment and in the economy, the hiring rate has to pick up -- and we have yet to see evidence that it will do so in the immediate future," he said.
On a more positive note, he said, the Fed has kept inflation "at levels consistent with good long-run economic performance," he said.
Hahahahahahahahahaha LOL there is nothing "long-run" about the Fed's performance but because I'm in a giving mood, I'll give Kocherlakota a pass. This time. Don't push it, homie, you only get one.
Find Kocherlakota's full remarks to the Minnesota Bankers Association here.