Wednesday, May 14, 2008

Recession in 2008?

Gary Stern
President of the Federal Reserve Bank of Minneapolis

Do you think we’re going to avoid a recession?

No. But there are recessions and then there recessions. The previous two were short, and the most recent one was not only short but shallow. I think that’s what really matters to people. The average resident doesn’t distinguish between whether the economy is growing half a percent or one and a half percent. That’s not their interest. It’s more, how does this feel? Are conditions generally improving noticeably or aren’t they?

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