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Fed Official Says Recovery Coming in 2010-2011 ROCHESTER, NY (WXXI) - A pair of America's top economists expect the current recession to continue through 2009 before the economy recovers in 2010 and 2011.

Charles Plosser -- the President of the Federal Reserve Bank of Philadelphia -- held his 30th annual Economic Outlook Seminar in Rochester today. Also speaking at the event sponsored by the Simon School of Business at the University of Rochester was James Glassman, the senior economist at JP Morgan Chase Bank. Both agreed that the nation can expect several weak quarters before the economy begins to recover towards the end of 2009. Both think the economy will return to near-trend growth in 2010 and 2011.

Plosser says a "perfect storm" of events caused what should have been a collapse in housing alone to rebound throughout the financial markets. He says a reform that's needed to keep it from happening again is transparency. That means clear objectives from economic policymakers, and clearly stated "rules of the game" for investors. Plosser says those rules should spell out what criteria the Federal Reserve will use to decide how it's going to respond and when it needs to close a lender to avoid uncertainty during a financial crisis.

Glassman says two of the three necessary steps to correct the problem have already been taken: getting housing prices back down to normal, and stabilizing oil prices. He says the third step is to get over the fear that more shoes are going to drop.

More than 400 people attended the annual economic outlook seminar, which is sponsored each year in Rochester by the Simon Graduate School of Business Administration at the U of R.
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