UPDATE 1-Fed’s Lacker sees full recovery a long way off

(Adds details, context)

MORGANTOWN, W.Va., April 13 (BestGrowthStock) – Richmond Federal
Reserve Bank President Jeffrey Lacker said on Tuesday that
despite some encouraging signs, the U.S. economy is a long way
from full recovery.

“The most likely outcome for the rest of 2010 is that the
national economy will grow at a moderate rate,” Lacker said in
comments prepared for delivery in a speech to a regional Fed

Lacker’s comments were somewhat more downbeat about the pace
of recovery than in the past, suggesting pressure within the
Fed to begin tightening financial conditions may be subdued.

Lacker is known to be one of the more aggressive
anti-inflation hawks on the Fed and has warned of the risks of
inflation if the central bank delays pulling back the extensive
support it provided the economy during the downturn.

On Tuesday, he said inflation remains benign, although he
stressed that the risks of a sharp decline in inflation had

In discussing the economy, he said there is some
stabilization in housing markets but that overbuilding of homes
means housing will not provide a lift in the recovery.

The Richmond Fed chief said news that employers added jobs
in March was “the most encouraging sign to date” about the
recovery. But while the labor market is lifting itself off the
floor, rapid growth in employment this year is unlikely, he
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(Reporting by Mark Felsenthal)

UPDATE 1-Fed’s Lacker sees full recovery a long way off