National Economic Slowdown May Hurt Local Recovery
Thursday, June 23, 2011
A San Diego State University Finance professor says the federal reserve is acknowledging what many economists have been saying for some time, that there's a lot of uncertainty about a slower than expected economic recovery.
SAN DIEGO The Federal Reserve Board says the economy is recovering from the great recession, but that is not happening as quickly as initially expected. A San Diego State University professor said the national economy is running into problems and that could affect San Diego's path to economic recovery. Unemployment is down a bit and gas prices are down from a high price six weeks ago. But, the local recovery remains fragile.
"For example housing, which is important for construction is generally still incredibly weak," said Dan Seiver, finance professor at San Diego State University. "And we still have a big overhang of foreclosures. And we still have a lot of unemployment. And we don't have a state budget either. That doesn't help in terms of uncertainty."
Federal officials say they'll keep interest rates low for an extended period in an effort to stimulate economic growth.