Duke Says Recovery May Be Slower on Households’ Caution

Federal Reserve Governor Elizabeth Duke said that baby boomers, the generation nearing retirement, are less likely to spend any gains in wealth than in 2007, potentially holding back the recovery in consumer spending.

“Some of the effects of recent economic turmoil may result in a longer period of economic adjustment than has been the case in past recessions, as fundamental attitudes appear to have shifted,” Duke said today in a speech in Richmond, Virginia, citing data from the Fed’s Survey of Consumer Finances released today.