GLENDALE, Calif. - The modest U.S. economic recovery is reducing the chances for a return to recession, said Robert Parry, president of the Federal Reserve Bank of San Francisco.
Speaking to a meeting of the Glendale College Foundation, Mr. Parry projected a growth rate for 1994 of 2.5% to 3%, which he termed "respectable" and actually preferable to the higher growth rates after previous recessions.
"The problems from the past resulted from too much volatility contributing to unsustainably rapid growth,' he said. In today's economic climate, he continued, "We may escape the need for another recession for many years to come."
Calling the California and national economies "two different worlds," Mr. Parry predicted that California faces more hard times ahead. A continued lag in real estate markets - combined with defense cuts as large in the next four years as in the past five - will be contributing factors, he said.