Chicago Federal Reserve Bank President Michael Moskow Wednesday said the risks in the U.S. economy are still tilted towards further weakness but the economy is not in recession and he expects a second half rebound. "The U.S. economy is not in a recession but it is clearly operating below potential," Moskow said in response to a question following his speech to an economic forum. "This slowdown is mainly in the high-tech and manufacturing sectors. Other sectors, like housing, are strong," he said. Moskow also noted continued growth in retail sales and employment, and said, "It is rare to see employment growing in the early stages of a recession." Dallas Federal Reserve Bank President Robert McTeer Wednesday afternoon said he's more than 50% sure the U.S. economy is not headed for a recession, more or less echoing the Fed theme of the day. On a day with six Fed speeches, McTeer expressed the same sentiments as fellow Fed presidents Jack Guynn of Atlanta and Michael Moskow of Chicago, saying "I'm above 50% sure" the economy is not in recession. "The first quarter felt a lot like last the two quarters, a little slow," the Dallas Fed president told an audience of home mortgage bankers in the Texas capital.