A Perspective on the Economy: An Economic Outlook Featuring John Williams, President and CEO of the Federal Reserve Bank of SF

October 2012

At the Financial Women’s Association of San Francisco event on October 15, Dr. Williams characterized the U.S. economy as on the mend. Dr. Williams pointed to the auto and housing markets as showing tangible signs of the improving economy. In addition, Dr. Williams discussed
the September announcement of the asset purchase program to continue and the FRB’s commitment to continue asset purchases until the economy shows further signs of recovery in unemployment and price stability.

Despite the good news, Dr. Williams identified three factors that could negatively affect the recovery – the situation in Europe, fiscal policy, and general uncertainty. With respect to fiscal policy, Dr. Williams shared his belief that the Bush tax cuts will continue for some time and that the planned spending cuts will be delayed. The current legislation set to take effect in January 2013 projects an immediate improvement to the budget deficit; however, the side effects of the legislation would likely cause the economy to fall back into a recession. Dr. Williams also expressed concern that fiscal policy moving forward must include R&D spending to support long-run growth. —Contributed by Malana Moberg

The FWA event generated an immense amount of PR coverage from leading financial organizations and publications. Visit the NEWS section of the FWA Website to read more about Dr. Williams’ remarks in Businessweek, The Wall Street Journal and Reuters.