WASHINGTON — The United States faces an immense challenge with an economy expected to be $2 trillion smaller than what it should be over the next five years and growing unemployment that is likely to last “for at least some time,” according to Felix Rohatyn, the veteran investment banker who helped save New York City from bankruptcy in the 1970s.

Rohatyn, who is speaking Monday at a public and infrastructure finance conference here sponsored by the National Association of Bond Lawyers and the American University College of Law, said the federal government can directly address -- and reverse -- both of these economic maladies by taking a long, hard look at how it finances infrastructure.

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