Jeffrey Lacker, president of the Richmond Fed, today gave an upbeat view of where the economy is heading in 2010. So upbeat, in fact, that explicitly answered the question: How can economists be so optimistic?
His view for 2010:
Putting the whole picture together, I think the most likely outcome is that the economy will grow at a reasonable pace this year – housing should continue to recover from a very depressed state, consumers should gradually expand spending, business investment should make something of a comeback, and these components of demand should overcome a continuing drag from commercial construction.
His explanation for his optimism: Read more