28 November 2001, 11:10  Fed's Meyer: Risks Still to the Downside

Federal Reserve Governor Laurence Meyer said Tuesday that the economic risks remain "to the downside," but that the Fed has "provided some insurance" against those risks and said "the economy should gradually strengthen over next year." Meyer, in remarks to the National Association for Business Economics, said the economy's own "internal dynamics" of inventory rebuilding and new capital investment, as well as monetary and fiscal stimulus, should spur an economic rebound. Already, he said, there are "some signs of quite remarkable resilience." Once signs of "above trend" growth appear, the Fed will "begin the return to a more neutral policy," Meyer said.

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