A top Federal Reserve official warned Tuesday that one consequence of the Great Recession will be a "new normal" in which Americans have lower expectations for a better life.
In a speech, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto said that she expects "our journey out of this deep recession [to] be a slow one" because of the loss of skills jobless Americans have experienced as a result of prolonged unemployment, and the "heightened sense of caution" consumers and businesses are operating under as they navigate the worst economic downturn since the Great Depression.
Citing the fact that the average unemployed worker is out of a job for more than 30 weeks -- a new record -- Pianalto told the Economic Club of Pittsburgh that "the longer someone is out of work, the harder it is to find a job." About half of those currently unemployed have been out of work for at least six months.
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