Federal Reserve Bank of Atlanta President Dennis Lockhart said Monday that as recessions come to an end, economist forecasts tend to be overly pessimistic.
He also said it's hard to forecast the beginning and end of a recession.
Speaking in Orlando, Florida, Lockhart said he forecasts meager recovery in the U.S. economy in 2009, and that capital injections by the U.S. Treasury have strengthened banks' balance sheets.
Risks to recovery include international weakness, he said, such as the deflationary threat in Japan.
By Megan Ainscow and edited by Sarah Sussman
©CEP News Ltd. 2009