While the outlook is “extremely uncertain,” the “fragility of the financial system and the weakness in real activity” are “likely to persist for a while,” Federal Reserve Board vice chairman Donald L. Kohn told the Cato Institute yesterday.

“The current situation is so severe that it calls for careful review of how such a crisis evolved and how we can prevent a similar situation from happening again,” he said, according to text of his prepared remarks released by the Fed.

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