Federal Reserve: Weak Recovery Means High Unemployment For Several Years [View All]

[AllentownJake]

WASHINGTON — Unemployment likely will remain high for the next several years because the economic recovery won't be strong enough to spur robust hiring, Federal Reserve officials warned Tuesday.

The cautionary note struck by the presidents of regional Fed banks were the first public remarks by Fed officials since the government reported last week that the nation's jobless rate bolted to 10.2 percent in October. It marked only the second time in the post-World War II period that the rate surpassed 10 percent.

In separate speeches, Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that rising unemployment could crimp consumers, restraining the recovery. Consumer spending accounts for about 70 percent of economic activity.

http://www.huffingtonpost.com/2009/11/10/federal-reserve-weak-reco_n_352194.html

Shit I was an economy crank when I said this two months ago