Fed's Tarullo says worried about second-quarter recovery

Fed Governor Daniel Tarullo said that transitory factors contributed to the negative U.S. gross domestic product reading for the first quarter, but that he is not convinced the economy has shaken out its struggles just yet.

Tarullo, speaking on a panel at the Institute of International Finance event here, said the kind of progress the U.S. economy saw last year after a dismal first quarter was not yet present in the data. This repeated a view voiced by several Fed officials recently who cited the uncertain economic outlook ahead of the Fed's upcoming policy setting meeting.

(Reporting by Douwe Miedema and Michael Flaherty; Editing by Chizu Nomiyama)