2010 is shaping up for a weak recovery

2010 is shaping up for a weak recovery The Federal Reserve is in no rush to pull back its extensive economic life support measures. Chicago Federal Reserve President Charles Evans said: We have to think about our exit policy and are looking at it very carefully, but at the moment, that's not our first order concern, at the moment, its policy accommodation. I think that the recovery is going to be very unsatisfactory in 2010. Evans, who will vote on the Fed's policy-setting panel in 2010, said he expects unemployment to rise above ten percent. The Fed has cut rates to near zero and pledged to hold rates there for an extended period. Its next policy-setting meeting is Nov. 3-4 and it is not expected to signal any movement toward an exit then. High unemployment and low inflation rates both indicate that policy accommodation is in order, and with economic growth, household spending will be restrained and businesses will face weaker demand for their goods and services, Evans said. "It is not going to feel l ike a recovery for some time.