The Federal Reserve Challenge

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The Federal Reserve Challenge

Transcript of The Federal Reserve Challenge

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The Federal Reserve Challenge

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Agenda

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Current Economic Conditions

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Financial Markets

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Source: Federal Reserve Bank St. Louis

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Labor Markets

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Inflation

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Consumption

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Investment

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Sources: Dept. of Commerce : Census Bureau

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Net Exports

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Government

• Real State & Local Government purchases are down 2.5% from third quarter of 2008.

• Creating strain on labor force and causing adverse effects on GDP.

• Projected 2011 stimulus, $135 billion, is one-third of actual 2010 stimulus, $404 billion. (Congressional Budget Office)

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Forecast

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Forecast

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Risks

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Risks

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Recommendation

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Monetary Policy to Remain Accommodative

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Questions?

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