CHICAGO -(Dow Jones)- Chicago Federal Reserve President Michael Moskow said Thursday he expects U.S. employment growth will continue as the year advances and sees no signs of slowdown in consumer spending. In addition, Moskow thinks the U.S. housing market remains strong based on all the data that he's seen and doesn't expect a slowdown in the near future.
Moskow made his remarks at a WLS Radio/Wall Street Journal business breakfast at The Metropolitan Club in the Sears Tower.
Although Moskow feels optimistic about the economy, he noted in a question and answer session with the audience after his speech that business spending needs to pick up.
"The underlying point is that this recovery so far has been mostly through increased consumer spending," Moskow said. "To be sustainable, business firms have to first stop reducing spending and second, start increasing their spending. That will happen, but could take some time and vary by sector and region."
Moskow noted that business spending has lagged behind consumer spending since the end of the recessionary period, in part because of excess capital spending in the late 1990s, particularly in the telecommunications sector.