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M. Continuo

U.S. not facing recession: Fed's Lacker


    WASHINGTON (Reuters) - The American economy has slowed down in recent months as Europe's financial crisis weighs but is not heading for another period of retrenchment, Richmond Federal Reserve Bank President Jeffrey Lacker said on Monday.

    Lacker said he is not concerned about inflation even though he reiterated his disapproval of additional monetary easing from the U.S. central bank.

    "The cloud hanging over Europe is having an effect on export demand and manufacturing demand," Lacker told Bloomberg Radio in an interview.

    "I don't think this is fatal. I don't think this is tipping us into recession right now," he said.

    (Reporting By Pedro Nicolaci da Costa; Editing by Padraic Cassidy)