“Fed’s Plosser: Sustainable Economic Recovery Is Now Underway”
“With a sustainable economic recovery now underway, policy makers will soon have to start thinking about pulling back their monetary stimulus to ensure inflation stays low and inflation expectations remain well-anchored, Philadelphia Federal Reserve President Charles Plosser said Friday.
While complete healing from the deepest downturn since the Great Depression will take time, Plosser said the recovery is becoming more ‘broad based,’ which should leave the economy to grow by around 3.5% this year and next, somewhat stronger than the underlying trend growth rate of the economy, which he believes to be about 2.75%.
‘I believe the economic recovery is on a sustainable path, and I expect further progress even as we unwind the accommodative monetary and fiscal stimulus put in place during the crisis,’ Plosser said.” Read more.
Deborah Lynn Blumberg
The Wall Street Journal, June 11, 2010.
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