Fed research economist sees signs of economic recovery
Staff report
boardman
A senior research economist from the Federal Reserve Bank of Cleveland addressed Mahoning Valley business leaders in a question-and-answer session on the future of the country’s economic recovery.
Kenneth R. Beauchemin, the keynote speaker at a Thursday breakfast event at Antone’s Banquet Center on Market Street sponsored by the Youngstown/Warren Regional Chamber and Home Savings & Loan, spoke about current economic conditions.
Due to technical difficulties, however, he was unable to deliver his intended presentation. Instead, the economist took questions from the audience on the nation’s monetary policy.
A steady decline in the country’s rate of inflation and slow growth likely will keep interest rates low for the foreseeable future, Beauchemin said.
“We are not meeting our mandate for inflation, and we are not happy with our rate of economic growth,” he said. “But a major drop in unemployment or the end of disinflation may cause the [Federal Open Market Committee] to reconsider a zero percent interest rate.”
The Federal Open Market Committee is responsible for changes in the federal funds rate.
The economy continues to suffer from oversupply in the residential housing market and a decline in nonresidential investment in structures, Beauchemin said. But there are signs of recovery, he said.
“Consumers look like they are getting up off of the mat,” Beauchemin said. “Business equipment investment is robust.”
Eric Planey, the chamber’s vice president of international business attraction, also spoke at the event, focusing on how globalization can benefit the Valley.
Earlier this week, the chamber unveiled an international-marketing book aimed at attracting foreign investment to the Youngstown-Warren area. The chamber also revealed plans for a $9 million World Trade Center to be built on West Federal Street in downtown Youngstown. The building would house international small and medium enterprises looking to establish a foothold in North American markets, Planey said.