Banker sees good prospects for US economic growth this year
channelnewsasia.com
The president at the Federal Reserve Bank of New York, William McDonough, has said he sees good prospects for US economic growth this year.
"The prospect for growth in 2003 is rather good," Mr McDonough told reporters on Tuesday.
"The US economy is recovery nicely after a mild recession."
Echoing Mr McDonough's views, Philadelphia Federal Reserve Bank President Anthony Santomero said 2003 will be a transition year for the US economy on its way to full potential, with consumer spending holding up and businesses investing again.
"I see 2003 as a year of moderate growth, but more important, a year over which the recovery gained real momentum and the US positions itself for a period of sustained expansion in the years ahead," Mr Santomero said in the text of a speech to the New Jersey Technology Council on Tuesday.
Mr Santomero also told reporters he sees US GDP growth returning to 3 to 4 percent by the end of the year although growth in the first half will be slower.
However, the president of the Federal Reserve Bank of Richmond, Alfred Broaddus, is less optimistic.
He said that business spending, which is a key factor in the US economic health, will not pick up momentum until America's conflict with Iraq is resolved.
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