The “notably weak” economic recovery will continue, with “frustratingly slow” growth despite the Fed’s efforts because they lack complementary tax and spending policies, Federal Reserve Bank of San Francisco president John Williams said Tuesday.
While the economy has been growing for the past two and a half years, “we are still suffering from the aftereffects of the worst recession of the post-World War II period,” Williams told a gathering in Vancouver, Wash., according to a text released by the Fed. The “recovery has been notably weak and the unemployment rate is still shockingly high. … I expect the pace of economic growth to be frustratingly slow and the unemployment rate to remain very high for years to come.”
The Fed is doing “everything” possible to propel growth, he said. “What’s also needed are tax and spending policies that work together with Federal Reserve programs to stimulate the economy.”