LOS ANGELES, May 18 (UPI) -- Two Federal Reserve Bank economists forecast a rapid recovery for the U.S. economy but one private economist says the forecast is "ridiculously optimistic."
Justin Weidner and John C. Williams, researchers at the Federal Reserve Bank of San Francisco, issued a report Monday indicating recovery from the worst recession since the Great Depression "is likely to be faster than from the two previous recessions," the Los Angeles Times reported.
The projection came despite recent erratic stock trading, attributed in large part to debt crises in Europe, and widespread concern that recent improvements in the U.S. economy might not last, the newspaper said.
"I see no signs of a double dip (recession)," Williams said. "The economy continues to gain momentum, and consumer spending and business investment continue to improve."
The Times noted a minority of economists are calling for a double-dip recession while more analysts expect a so-called U-shaped recovery, characterized by annual growth of about 3 percent. Economic growth, under that scenario, would be limited by a sluggish job market and continuing consumer debt, the report said.
Williams, director of research at the San Francisco Fed, said consumers will spend because, after cutting back on spending for "a couple of years … you need to replace things eventually."
Christopher Thornberg, founding principal of Beacon Economics, told the Times he is forecasting slow growth into next year.
"The financial market is still volatile, the banks are still a mess, the commercial real estate market is still a mess," he said. "They're being ridiculously optimistic."
