Marc Giannoni, Senior Vice President and Director of the Federal Reserve Bank Of Dallas discussed the present and future economic trends at our meeting on November 20th. He observed that current indicators show a stable but slowing economy in the US and worldwide.
Marc Giannoni, Senior Vice President and Director of the Federal Reserve Bank Of Dallas discussed the present and future economic trends at our meeting on November 20th. He observed that current indicators show a stable but slowing economy in the US and worldwide. Although new job creation is lagging in America the labor market remains strong with a moderate wage growth of 3%.
Consumer spending accounts for more than 70% of the Gross Domestic Product (GDP). This component of the American economy is growing steadily which Mr. Giannoni attributes to other economic factors which are also growing or at least remaining stable. Inflation is remaining in check at around 2%. He rates the odds for a recession within the next two years at 40%, but even if that were to occur it would be a much softer landing than that experienced in the last recession.