Lockhart predicts ‘anemic recovery’

Dennis Lockhart was not leading any pep rallies Monday.

Lockhart, president and chief executive officer of the Federal Reserve Bank of Atlanta, speaking in Nashville on Monday, forecast “an anemic recovery in the medium term.”

“Current economic conditions are mixed at best, but the economy appears to be in stabilization mode,” he said. “Stabilization necessarily precedes recovery. A recovery has not yet taken hold but should begin before too long.”

He expressed concern that commercial real estate will continue to cause problems in the Southeast.

“The financial sector remains in a fragile state,” Lockhart said. “So far this year, 57 U.S. banks have failed, including 13 in the Southeast. Banks in this region suffer from overconcentration of loans backed by residential and commercial real estate.”


Leave a comment

Filed under Federal Reserve, Recession

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s