GREENSBORO, N.C. -(Dow Jones)- Federal Reserve Bank of Richmond President Jeffrey Lacker Monday said Europe will likely slowly recover from its financial crisis.

"There is some risk that European economies will falter further--that's not the most likely course. I think they will pull their way out of this slowly but surely," Lacker told a group of business and community leaders.

So far, Europe's troubles have cut into U.S. growth a little bit, he added.

During a question and answer session with the audience, Lacker also said it would probably take until the middle of the decade before U.S. single-family housing construction begins to recover.

-By Jeffrey Sparshott; Dow Jones Newswires; 202-862-9291; jeffrey.sparshott@dowjones.com