Fed's Kohn-expect "couple" quarters of contraction

WASHINGTON, Nov 19 (Reuters) - U.S. Federal Reserve Vice Chairman Donald Kohn said on Wednesday the U.S. economy is likely to contract for at least half a year, but he believes the risks of deflation taking hold are small.

"We have a very weak economy. The U.S. economy is declining right now," he said in response to questions after a speech at the Cato Institute.

"My most likely outcome is for a couple of quarters of negative growth, and inflation coming down, but not getting to that deflationary state," he said. (Reporting by Mark Felsenthal; Editing by Theodore d'Afflisio)