The president of the Federal Reserve Bank of Philadelphia expects the economic recovery to begin in the second half of the year – but by then the current recession could go on the books as one of the longest in the post-World War II era.
In remarks prepared for a forum today at the University of Delaware, Charles Plosser says he doesn’t expect the unemployment rate to stray into double digits – as it did during the recession of the early 1980s. However, he says he doesn’t expect the jobless rate to fall soon.
In the remarks, Plosser also predicts the housing sector will hit bottom this year and the financial markets will slowly return to normal. He expects the economy to begin to slowly recover in the second half. (AP)
