Dallas Federal Reserve President Richard Fisher said on Wednesday the U.S. economy is poised for a slow, sluggish recovery as it emerges from a painful recession.

We're beginning to see indicators that we're coming out of this, he said in an interview with the Dallas Morning News.

I think it will be a while before businesses rehire or increase pay, he said.

Consumers are also likely to be cautious before starting to spend again, said Fisher, who is not a voter on the Fed's interest rate setting panel.

They're all going to be very, very conservative on that front until they feel comfortable that we have a global economy that is proceeding, he said. I think that will take some time.

Fisher said he believes the worst declines may be over for residential investment, inventories, exports, and possibly consumption.

(Reporting by Mark Felsenthal, Editing by Chizu Nomiyama and Jeffrey Benkoe)