WRAPUP 3-Fed officials cautious on U.S. economic recovery

Tue Nov 10, 2009 10:34pm GMT
 
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* Too early to exit from economic supports, officials say

* Fed's Yellen says inflation not main risk now

* Lockhart sees "relatively subdued" growth in medium-term

(Updates with Lacker, Tarullo comments)

By Kristina Cooke ATLANTA, Nov 10 (Reuters) - Three top Federal Reserve officials on Tuesday struck a cautious note on the U.S. economy, citing high unemployment, heavy reliance on government support and commercial real estate woes as hurdles to recovery.

Speaking less than a week after the Fed left interest rates unchanged at near zero, a trio of top officials -- San Francisco Federal Reserve Bank President Janet Yellen, Atlanta Fed chief Dennis Lockhart and Boston Fed President Eric Rosengren -- said the economy was still vulnerable.

"The strength and durability of the expansion is in question," Yellen said in Phoenix, Arizona. "High unemployment, weak job growth and paltry wage increases are a recipe for sluggish consumer spending growth and a tepid recovery."

She said it was not yet clear whether the private sector could carry the load once supportive policies fade.   Continued...

 

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