The Black Box

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Fed's Santomero Sees Moderate Recovery
Sunday April 13, 1:15 pm ET

http://biz.yahoo.com/rb/030413/economy_fed_santomero_2.html

PHILADELPHIA (Reuters) - Philadelphia Federal Reserve President Anthony Santomero said on Sunday the U.S. economy will gradually recover this year and economic growth will pick up steam in 2004.
But he warned that a "barrage" of uncertainties still pose a challenge to longer-term business strategies, including plans to hire new workers, and that it was too soon to declare a full-fledged end to the economy's troubles.

"I see economic growth accelerating over the course of this year toward a healthy and sustainable pace of around 3 to 4 percent by year's end and into 2004," Santomero said in prepared remarks at a conference sponsored by The American Truck Dealers.

Santomero said it was difficult to discern war-related obstacles to growth from fundamental sources of economic weakness. But as the focus shifts away from Iraq, he added, consumer and business spending will resume and allow a more robust economic expansion to take hold.

"It is far too soon to declare that the global situation has now been stabilized and the U.S. economy is back on track," he cautioned.