Off The Wire
Fed's Daly says economic slowdown could help prevent recession
SAN FRANCISCO (Reuters) - The economy is widely expected to slow this year, San Francisco Federal Reserve Bank President Mary Daly said on Friday, which itself means there should be less of a chance of a recession.
“The economy is now self-bridling itself, coming back down to a sustainable pace,” Daly told the Bay Area Council Economic Institute. “That will if anything help us prevent a recession.”
Daly also said that while the partial U.S. government shutdown that ended last month will have mostly only a transitory impact on economic growth, she is concerned that another shutdown could have a more lasting negative impact on uncertainty, confidence and ultimately economic growth.
Reporting by Ann Saphir; Editing by Chizu Nomiyama