Economic sluggishness will continue in 2009, and it’s unclear when a recovery will begin, Federal Reserve Bank of Chicago president Charles L. Evans said yesterday.

“Because of the economic headwinds we face, real economic activity is likely to be quite sluggish in the second half of this year and into 2009,” Evans told the Association for Manufacturing Technology, according to prepared text of the speech released by the Fed. “I expect that growth will pick up as financial markets make headway in working through these problems, and credit flows improve somewhat. Still, the level of uncertainty surrounding this time path is very high.”

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