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Fed's Mishkin on economic outlook

Frederic Mishkin, a governor of the Federal Reserve, expects a period of economic weakness in the near term that should be offset in future quarters by the monetary easing already in place and the fiscal stimulus package.

Mishkin said that the risk to this outlook was that a larger-than-expected decline in housing prices would further depress home purchases and act as a drag on consumer spending. Another risk was that lending standards could tighten for types of credit other than mortgages.

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