RECENT EVENTS
February 9, 2010 Economic Outlook Luncheon
A sold out crowd attended
this year's Economic Outlook Luncheon receiving a summary of current
conditions as well as a look at expectations for the United States
economy from William Strauss of the Federal Reserve Bank of Chicago.
This outlook had a positive tone coupled with a few sobering predictions
for the next several years.
On a positive note, the recession appears to have ended but, according
to Strauss, we will have to wait until 2011 for official word
from the government. The Chicago Fed Activity Index hit its lowest
point in recent years in January 2009 and has been improving since,
easing out of recession-type numbers in June 2009. Strauss predicts
the typical 'tennis ball effect' will take place with the economy
gradually growing back to full strength.
While this is encouraging news, Strauss also shared some less
positive predictions. Since 2007 the market has lost 8.4 million
jobs. While unemployment recovery always lags behind economic
recovery, it is predicted that these jobs may set new records
in terms of longest amount of time until they rebound.
Overall future predictions were favorable with the GDP expected
to grow. As a result of the recession people have been saving
a larger percentage of their personal income. It is assumed by
economists that as the economy returns to normal, savings will
decrease and spending increase. This will help as two-thirds of
the United States economy is consumer driven. Also, as consumer
demand decreased companies cut back production at an even higher
rate. This has led to smaller inventories. Growth in manufacturing
will be solid in 2010 and 2011 due to improving demand and rebuilding
of these depleted inventories.
In many areas such as real estate and the stock market, the economy
is showing improvement but is still below previous levels. In
sum, Strauss stressed that one has to keep in mind that the worst
is most likely behind us and things will be improving, however
slowly.
William Strauss's presentation is available in the Members
Only section of the website.
Dan
Stump, Paul Borek, William Strauss, |
Paul
Borek with attendees prior to |
The
sold-out program filled
|
Students
of Sycamore High School |
