Oct 20 The U.S. economic recovery has been
"painfully slow" and is unlikely to gather pace soon, a Federal
Reserve policymaker said on Thursday.
Given the backdrop of weak income growth and the decline in
household wealth, consumers are reluctant to spend, Sandra
Pianalto, president of the Cleveland Fed, told business leaders
in Toledo, Ohio.
A weak housing market, unsettled international markets and
a constrained government sector add to the headwinds facing the
economy, she added.
Pianalto said she expects real gross domestic product
growth of around 2.5 percent in 2012, similar to the last
couple of years.
Job growth has been anemic as spending by consumers,
businesses and the government "remains uninspiring," she said.
"In order for the U.S. economy to make substantial progress
in reducing the unemployment rate, economic growth clearly
needs to accelerate," she said.
"Unfortunately, I don't expect the pace of growth to pick
up very soon."
Pianalto does not have a vote on the Fed's policy-setting
committee this year.