Guynn says moderate economic growth expected in 2003

ATLANTA - Low interest rates are important to reviving the economy, which is expected to grow only about three percent this year amid modest consumer spending and a continuing rise in the jobless rate. <br> <br> That&#39;s according to Atlanta Federal Reserve Bank President Jack Guynn, a nonvoting member of the Federal Open Market Committee, which sets the nation&#39;s monetary policy. <br> <br> Guynn told the Atlanta Rotary Club Monday that businesses and consumers will need a little more time to adjust to the slow pace of recovery and the jobless rate. He expects things to get a little worse before they get better. <br> <br> He says the possibility of war with Iraq contributes to the uncertainty. <br> <br> But he says all this ``should not obscure the fact that the U.S. economy made very solid progress over the last year, and under some extraordinarily difficult circumstances.&#39;&#39; <br> <br> Guynn would not say to reporters how long the Fed would keep interest rates low, if they would go lower or when they would increase. But, he indicated that the rates would maintain historically low levels for the time being.

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