WASHINGTON (MarketWatch) -- A top Federal Reserve official suggested Wednesday that the outlook for U.S. economic growth remains worse than the inflation forecast, raising the possibility that the central bank might be in no mood to hike interest rates to combat higher commodity prices.
In a speech in Israel, Fed governor Frederic Mishkin said that it will take some time for the financial system to get back on its feet and accordingly, will continue to depress growth.
Mishkin characterized the likely pace of recovery in financial markets as "slow."
This "suggests the U.S. economy will be subject to substantial headwinds for some time," he said.
