PDF: Chattanooga Rotary speech
Dennis P. Lockhart, president and chief executive of the Federal Reserve Bank of Atlanta, today said there is not enough proof the country is in a recession.
He said economic activity during the most recent quarter remained positive.
He, however, acknowledged the country was in an economic slowdown and predicted the gross domestic product for the first quarter would show little if any growth.
He said weakness in the housing market was to blame for slow economic growth.
He made his comments in a speech at today’s luncheon meeting of the Rotary Club of Chattanooga at the Chattanooga Convention Center.
Mr. Lockhard said weakening growth, unstable financial markets and inflation are the biggest challenges faced by the U.S. economy today.
Recent actions by the Fed to intervene in the economy were risky, he said, but are an attempt to maintain or restore normal market function.
He also said tax rebates should help stimulate the economy some.
“Looking ahead further to 2009, my outlook becomes more optimistic,” he said. “It will take longer than I earlier expected to return to solid growth, but by the fourth quarter of 2008 the conditions should be in place to support a return to healthy growth next year.”
See tomorrow’s Chattanooga Times Free Press for complete coverage.
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