Jobs will be lost sixty thousand New York Fed Vice-Chairman also pessimistic.

New York City Independent Budget Office 20 release of the report, the economic recession within the next year will result in the loss of New York 59,400 jobs. .At the same time the Federal Reserve (Fed) Vice Chairman Donald Kohn said the economy is still "very severe" may be improved until next year, and will be "relatively modest." .<P> Although the current economic data, the U.S. economy is not a recession, but New York City Independent Budget Office report that the economic recession in the New York area will soon come, and will continue into the second half of 2009. .Reported that the possible loss of the next year 59,400 jobs, which means that after a recession in 2001, New York, the newly added employees in the private sector, there will be 1 / 4 face unemployment. .Among them, the Wall Street financial institutions will lay off 333 people. .</ P> <P> Another anonymous source said that the Wall Street investment bank Lehman Brothers will announce 1,300 job cuts. .Lehman Brothers were not immediately available for comment. .</ P> <P> and Fed Vice Chairman Donald Kohn's view as pessimistic, he will portray the current bleak economic situation: a substantial contraction of the housing market, housing value has shrunk dramatically, weak consumer and business spending, the performance of the job market weakness, .At the same time food and energy prices are way up. .While the financial markets has improved in recent weeks, but Cohen pointed out that some markets have remained under pressure as investors worried about credit quality has not eased. .</ P> <P> Cohen warned that house prices may be higher than expected level shrink, which may be detrimental to lending institutions and financial markets, which "further drag" on economic activity. .He said that when the financial system becomes so chaotic, we have no response to experience; Faced with this situation, the credit environment will evolve, businesses and households to respond to the changing environment, these uncertainties mean that we .When forecasting the economic outlook, confidence will be greatly less than in the past. .</ P> <P> But Cohen still see hope for economic recovery. .With the influence of the stimulus gradually passed to ordinary families, boost the effectiveness of its consumer spending is gradually emerging, coupled with low interest rate environment, the economy, the U.S. economy will embark on the road to recovery. .He believed that economic activity in the second half of this year is likely to gradually stabilize, to 2009 when the growth momentum will be given. .</ P> <P> Cohen also said that the existing monetary policy to promote employment and inflation targeting, and make appropriate adjustments. .The statement agreed with the market expectations, which began last September after (when the interest rate of 5.25%) after a series of interest rate cuts, Fed rest of the year most of the time to maintain the current 2% interest rate. .However, he noted, Fed to judge the current situation there is still great uncertainty, when necessary, thereby leaving room for further interest rate cuts. .Work in the usual, Fed Cohen and number two Fed Chairman Ben Bernanke has a very close cooperation. .</ P> <P> recent weeks, several Fed officials, increasing concerns about inflation, especially food, energy and other commodity prices soaring. .There are even a few Fed officials have suggested raising interest rates this year to stabilize prices, but also inhibit the public on inflation expectations. .</ P> <P> But Cohen believes that the recent news on inflation can be said to be "mixed." .Despite rising commodity prices, but he expects they will gradually "flatten out" and restricting the economic slowdown in salary increases for employees of enterprises and increase prices, underlying inflation will be relieved. .Cohen said that although the long-term inflation expectations "have looked up", but so far not been out of control. .</ P>.