KSLA News 12 Shreveport, Louisiana |Fed Reserve bank president says recession ebbing
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Associated Press - August 27, 2009 6:44 PM ET
LITTLE ROCK, Ark. (AP) - A Federal Reserve bank president says the nation is on its way out of the recession, but believes it is too early for the Federal Reserve to act on an exit strategy.
James Bullard, the president of the Federal Reserve Bank in St. Louis, said Thursday that employment and spending numbers indicate the recession could be over by the end of the year. Once that happens, he said, the Federal Reserve must sell mortgage-backed securities purchased during the economic slide.
Bullard said Federal Reserve assets could reach $2.5 trillion by the end of 2009 - double from the start of the year.
He also said Congress should pass reforms so taxpayers won't be on the hook every time a company "too big to fail" starts losing money.
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