Uncertainty from several fronts will push down gross domestic product growth and prevent a V-shaped recovery, Federal Reserve Bank of Minneapolis president Narayana Kocherlakota said yesterday.

Calling for GDP near 3% this quarter and around 3.5% for the next two years, Kocherlakota said a tax increase is necessary to offset the rise in public debt, bank lending woes furthered by uncertainty over financial regulatory reform, and the crisis in Europe, all of which will all spark uncertainty that will dampen GDP growth.

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