Fed’s Fisher: Worst-Case Scenario Unlikely

LONDON — Dallas Federal Reserve Bank president Richard Fisher said yesterday that the U.S. economy’s chances of an all-out tailspin are slim, despite increasing concern about downside risks.

He said inflation and economic weakness both pose risks right now. Financial markets continue to struggle with their recent woes, but the longer-term outlook is not yet overly gloomy, Fisher said in text prepared for a speech to the Society of Business Economists.

A disastrous downward spiral remains an outlying risk for now, he said. So far, the nonfinancial sector of the economy has “held up reasonably well” despite weak job growth and sagging consumer confidence, Fisher said.

— Market News International

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