Fed's Kohn on US trade gap

Federal Reserve Governor Donald Kohn said on Friday it was "hard to imagine" the imbalance in the U.S. current account could continue indefinitely and that a rough correction of the situation was a distinct risk.

However, Kohn said it was a good sign that investors had not hauled money out of the United States and that the correction in the dollar had remained "relatively modest" in the wake of last year's recession and corporate profit slide.

"The rising level of foreign net investment in the