MW: Fed's Pianalto: Growth will not pick up very soon
By Greg Robb
WASHINGTON (MarketWatch) - The pace of growth in the economy won't pick up very soon as the economy is likely to experience continued "lackluster" growth in 2012, said Cleveland Federal Reserve Bank President Sandra Pianalto on Thursday. "My outlook for real GDP growth in 2012 is about 2.5%, on par with the past two years," Pianalto said in a speech at the University of Toledo. The primary cause of the stubbornly high unemployment rate is that spending by consumers, businesses and government remains "uninspiring," Pianalto said. She said she doubted that there has been any structural shift that would lead to a permanently higher jobless rate. Pianalto will have a vote next year on the Fed's interest-rate setting committee.
