Economy, jobs will recover slowly: US Federal Reserve

The US economy and job market will rebound only gradually because of ongoing constraints on lending, Federal Reserve Board vice chairman Donald Kohn said on Sunday.                                           

This means inflation will remain contained for some time, he said in prepared remarks to the annual meeting of the American Economic Association.                                           

"Lingering credit constraints are a key reason why I expect the strengthening in economic activity to be gradual and the drop in the unemployment rate to be slow," Kohn said.