Fed Officials Projecting Slow Economic Recovery

Federal Reserve officials are out on the speaking circuit in full force this month, and their comments generally indicate the central bank believes the economy is recovering slowly.

But the most important Fed view may come Friday, when Chairman Alan Greenspan delivers a speech in San Francisco on economic policy.

On Tuesday, Anthony Santomero, president of the Federal Reserve Bank of Philadelphia, predicted a slow recovery because, he said, rising unemployment may curtail consumer spending,

Still, in a speech in Philadelphia, he said the economy is “valiantly trying to find its footing” and suggested it may not need another interest rate cut. The Fed, which cut its key short-term rate 11 times last year, to 1.75% currently, will meet again Jan. 30.

On Monday, Jack Guynn, president of the Federal Reserve Bank of Atlanta, said the recession would extend into March and growth could be 3% in the second half of the year. But Guynn didn’t rule out another cut in the Fed’s key rate.

Greenspan, meanwhile, hasn’t publicly commented at length on the economy since October, so his Friday speech is eagerly awaited.