Fed's Fisher Warns of US Economic Slowdown Published: Monday, 5 Jul 2010 | 9:59 PM ET Text Size By: Reuters Dallas Federal Reserve President Richard Fisher said the timing of monetary tightening will depend on conditions in the U.S. economy, which will slow in the latter half of this year, Japan's Nikkei newspaper reported on Tuesday. Jean Ayissi | AFP | Getty Images Richard W. Fisher, President and CEO of the Federal Reserve Bank of Dallas Weakness in private consumption may hurt growth and politicians might call for an expansion of monetary easing, although there is little more the Fed can do, Fisher said in an interview with the economic daily. But Richmond Fed President Jeffrey Lacker was more optimistic, telling the Nikkei that private consumption and corporate capital investment will expand enough to keep the U.S. economy on a sustained recovery later this year and through next year. Europe's credit problems were unlikely to severely hurt the U.S. economy, with the impact on real GDP growth likely to be around 0.1 percent to 0.2 percent, he said. With the U.S. recovery sustained, the key would be whether to drop the U.S. central bank's promise to keep interest rates low for an "extended period" late this year, Lacker said. Copyright 2010 Reuters.
No need for a warning, this was a given months and months and months ago, how anyone could not understand the chance of another slowdown is just an idiot. First off all the stimulus money injected into the economy over the last 18 months has propped up GDP, it was artificially inflated, the US economy never came out of the recession due to the fact it was all monopoly money supporting the so called "V" shaped recovery. Were still in the same exact recession as we were in 2 years ago and will be in the same recession for years to come. Just wait until the tax increases come in early 2011. For every tax increase of 1% of GDP lowers real GDP by 2-3%, so come mid 2011 the US economy will be extremely lucky to show anything north of 1-2% GDP and without any stimulus you might as well forecast GDP to be negative.