Federal Reserve Executive Offers Look Ahead at Chamber EDC Breakfast
Looking ahead was the focus of the St. Johns County Chamber of Commerce’s quarterly Economic Development Council Breakfast on Friday, Dec. 6, in St. Augustine. The Chamber welcomed David Altig, executive vice president and chief economic advisor at the Federal Reserve Bank of Atlanta, as the program’s featured speaker. He shared information about the latest monetary policy from the Federal Reserve Bank of Atlanta and how it affects business and industry in our region. He also discussed inflation and its local impact. Altig also provided a national economic forecast and shared key performance indicators businesses should monitor in the coming months.
In his predictions for the year, Altig pointed out that forecasting is a best guess, and this year was “rock solid” despite indications that the economy would not be as strong as it is.
“The economy is remarkably robust even in the face of historically rapidly tightening monetary policy,” he told attendees, noting that election years are not always this friendly to economic activity. Altig also explained that the Federal Reserve does not make policy but is a “taker” of policy from Washington, D.C.
Altig also noted that every new administration brings changes and adjustments. Policy decisions, such as tariffs, could decrease spending if prices are adversely affected, and the expansion of AI into business and the market could also have an effect. The latest data shows that most unskilled jobs have not been affected by AI, and only a fraction of high-skill workers use the technology significantly. Productivity has remained high even as the labor market has softened, and immigration is helping to keep labor market inflation low by making up for the lower birth rate among US citizens.
