Lockhart: Too Soon To Breathe Easy

Despite signs of improvement, it’s too soon to “breathe easy” as the economy remains at risk, with much uncertainty lagging, Dennis P. Lockhart, president of the Federal Reserve Bank of Atlanta, said yesterday.

He cited challenges that have arisen since August, according to prepared text of a speech, but told the Jacksonville Regional Chamber of Commerce: “The last few weeks have had the feel — for me personally and I think many in the business and financial community — of coming up for air.”

The economy is growing slowly and is poised for recovery, but still faces risks, including job losses, housing, and still-fragile financial markets, as inflation has been at “uncomfortable levels with hints of rising expectations,” he said.

The future seems to hold a less severe slowdown, with no quick recovery. “We remain in a period of considerable uncertainty. There are very real risks to this outlook,” Lockhart said, including financial instability and oil and home prices.

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