Roubini Says U.S. Can't Prevent Slower Economic Growth

(August 27) Bloomberg-- Nouriel Roubini, the New York University professor who forecast the U.S. recession more than a year before it began, said he would like to see Federal Reserve Chairman Ben S. Bernanke acknowledge today that the central bank overestimated the economy’s recovery.

“He would have to recognize that the economic recovery is faltering and that the Fed was wrong in expecting a stronger recovery this year,” Roubini said an interview on Bloomberg Radio. “He could then start to consider which are the additional policy actions” that are necessary to “try to prevent a double dip recession.”

Bernanke will address central bankers around the world at a symposium today in Jackson Hole. The Fed this month decided to keep its bond holdings at $2.05 trillion by reinvesting proceeds from maturing agency and mortgage-backed securities in Treasuries to support a slowing economic recovery.