DENVER - Kansas City Federal Reserve Bank president Thomas Hoenig said he expects economic growth of about 2.5% for 1993.
He also suggested that interest rates will remain stable.
In a speech to the Denver Rotary Club, Mr. Hoenig said inflationary pressures are "much better than they looked for a while.
"Complicating monetary policy earlier this year were early signs of inflation, but the more recent data have been much more favorable and it gives us a lot more to be optimistic about," Mr. Hoenig added.
Signs of Recovery
At the same time, the regional Fed chief noted signs of economic recovery.
"We've seen some troubling figures - corporations are restructuring balance sheets, they're refinancing rather than expanding, and they're not hiring. But there are other factors that play a role in our economy." Mr. Hoenig said.
He added that business investment and bank profits are up, while debt ratios are down. "These aren't saviors, but still they are improvements," he said.
"We shouldn't lose sight of these developments. These are positive signs, and I expect by the, end of the year we'll see something in the area of 2.5% growth," he said.
Mr. Hoenig noted that Fed policy "for about a year now has been stable, and that's where it will likely continue to be."