The U.S. economy faces a period of slower growth as unemployment remains high and the housing market remains weak, Pimco executive Neel Kashkari said at an investor conference in Singapore overnight.
The man who ran the $700 billion TARP program for Hank Paulson believes U.S. gross domestic product growth will now average between 3 and 4 percent versus its current rate between 6 and 7 percent.
"Unemployment at around 10 percent is going to remain high in the foreseeable future and then come down only slowly as the global economy recovers," Kashkari was quoted as saying by news agencies.
He now expects U.S. home ownership to fall back to levels last seen a decade ago in the U.S.
That would see the number of Americans owning their own home falling from around 69 percent to just 63 percent according to Kashkari.