Fed's Bullard: Economy In "Soft Patch" But Double-Dip Unlikely

(RTTNews) - A double-dip recession for the US is unlikely, St. Louis Federal Reserve President James Bullard said Friday morning ahead of Chairman Ben Bernanke's speech in Jackson Hole, Wyoming.
Bullard appeared on CNBC moments after the government downwardly revised its estimate for second quarter GDP growth to 1.6% from an initial reading of 2.4%.
"We are in a soft patch for the economy...but a double-dip is not likely," said Bullard, who expects "reasonable growth" in the second half of this year and for the economy to get back on track in 2011.
Bullard made headlines earlier in the month by saying the government should ramp up spending now in order to prevent deflation in the future.
His counterpart from the Kansas City Fed Thomas Hoenig has taken the opposite view, insisting that spending must be reined in and that the Fed should think about hiking rates.