Harvard’s Feldstein says U.S. economy in ‘holding pattern’ after recession
Harvard University economics professor Martin Feldstein said more bond purchases by the Federal Reserve probably wouldn’t do much to spur the slowly growing U.S. economy.
“At this point we’re really in a kind of holding pattern for the economy,” said Feldstein, a member of the National Bureau of Economic Research committee that dates the beginning and end of recessions, in an interview today on Bloomberg Television’s “InBusiness with Margaret Brennan.” He sees a 30 percent chance the U.S. will relapse into a recession, he said.
The NBER said this week that the worst U.S. recession since the Great Depression ended in June 2009. “The committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity,” the Cambridge, Massachusetts-based NBER’s group said.