Economic growth will be “sluggish” for “several quarters” before sustained expansion returns, but risks to the downside could force the Fed to cut rates again, according to Federal Reserve Bank of Philadelphia president Charles I. Plosser.

“A substantially weaker outlook than expected, particularly if that weakness is projected to be more prolonged than anticipated, may require further adjustments to policy,” Plosser told the Main Line Chamber of Commerce in Pennsylvania yesterday, according to prepared text of the speech released by the Fed.

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