Fed's Pianalto says US can withstand housing slump

The U.S. economy will withstand the housing slump and grow at a ``moderate'' pace with slowing inflation, Cleveland Federal Reserve Bank president Sandra Pianalto said Monday 6 November.

``I expect the economy to weather the recent challenges in the housing market,'' Pianalto said at an evening event sponsored by the Pittsburgh Business Times. ``I fully expect the economy to grow at a moderate, but sustainable pace.''

``Holding the rate steady is giving us time to assess the full impact of our