WASHINGTON (Reuters) - The depth of the damage done to U.S. consumers by the housing collapse and uncertainty among businesses has led to an unusually drawn-out recovery, Philadelphia Federal Reserve President Charles Plosser said on Tuesday.
The recovery process is under way and gaining strength, but is not complete.
“The magnitude of uncertainty has been extraordinary,” and is keeping businesses from investing, Plosser said at a housing conference. Consumers are still in the process of restoring family finances after a “devastating” blow from the drop in housing values.
He said the Dodd-Frank financial reforms had yet to protect the economy from financial firms that are “too big to fail,” a problem that “looms large” in the battle to avoid another financial crisis.
Reporting By Howard Schneider; Editing by Andrea Ricci