Worst of Credit Crisis Is Over: Fed's Lacker

The worst of the credit crisis is over, though there are still areas—such as commercial real estate—that are struggling, Jeff Lacker, president of the Richmond Federal Reserve, told CNBC Thursday.

“We’ve definitely turned the corner,” said Lacker. “We can see how it’s going to turn out.”

Commercial real estate has “a ways to go” and home mortgages still have “a big march ahead,” said Lacker. But he added that consumer portfolios are stronger overall than in they were during the 2008 financial crisis.

The pace of the US economic recovery will be “moderate right now,” but will be “strong by next year,” said Lacker, adding high unemployment is the major component that could stall the recovery.

Interest rates “have to go up, but not this month. We’re getting there, but we’re not there yet in my mind,” Lacker said.