Fed's Pianalto: Economy Will Stagger for Years

A bumpy U.S. recovery and subdued inflation warrant the central bank's promise to keep benchmark interest rates low for an extended period, a senior Federal Reserve official said on Thursday.

"Despite early signs of recovery, the economy is still facing some significant headwinds that will limit the rate of growth we can expect for the next couple of years," Cleveland Federal Reserve Bank President Sandra Pianalto told the Bonita Springs, Fla., Chamber of Commerce.

She said two major headwinds facing the U.S. economy are prolonged unemployment and a heightened sense of caution among consumers and businesses. (more)