IMF's Lipsky does not see double-dip U.S. recession
JACKSON HOLE | Fri Aug 27, 2010 7:32am IST
JACKSON HOLE Wyo (Reuters) - A top International Monetary Fund official said on Thursday strong corporate profits and moderate income growth should prevent the U.S. economy from slipping into a new recession.
"The base case remains most likely the continuation of a moderate recovery, emphasis on the moderate," John Lipsky, the IMF's first deputy managing director, told Reuters Insider on the sidelines of the Fed's annual gathering in Jackson Hole.
His remarks come as increasingly weak U.S. data have stoked concerns about a renewed contraction.
Housing data for July were quite grim, and durable goods figures sparked fears that gross domestic product could come dangerously close to stalling in the third quarter.
But Lipsky argued that these factors were not enough to push the economy into the red.
"We certainly don't expect some sudden surge in employment growth, but surely if the expansion continues, as we expect that it will, it will produce job growth," Lipksy said.
JACKSON HOLE | Fri Aug 27, 2010 7:32am IST
JACKSON HOLE Wyo (Reuters) - A top International Monetary Fund official said on Thursday strong corporate profits and moderate income growth should prevent the U.S. economy from slipping into a new recession.
"The base case remains most likely the continuation of a moderate recovery, emphasis on the moderate," John Lipsky, the IMF's first deputy managing director, told Reuters Insider on the sidelines of the Fed's annual gathering in Jackson Hole.
His remarks come as increasingly weak U.S. data have stoked concerns about a renewed contraction.
Housing data for July were quite grim, and durable goods figures sparked fears that gross domestic product could come dangerously close to stalling in the third quarter.
But Lipsky argued that these factors were not enough to push the economy into the red.
"We certainly don't expect some sudden surge in employment growth, but surely if the expansion continues, as we expect that it will, it will produce job growth," Lipksy said.