St. Louis Fed President Bullard: US avoided recession scare, but downside risks remain

St. Louis Fed President Bullard: US avoided recession scare, but downside risks remain

 

St. Louis Fed President James Bullard, in remarks on the economy at an event sponsored by the CFA Society of St. Louis, said that the US economy had avoided the "recession scare" in recent months. The incoming data, including the initial estimate of Q3 GDP, show the economy in a period of modest growth, which stands in contrast to the significant drops in business and consumer confidence, as well as other weak survey-related data. Bullard said that many forecasters had sharply revised their outlooks following the historical NIPA revisions released at the end of July, but that household and business spending proved more resilient to the European sovereign debt crisis than expected. Looking ahead, Bullard said the FOMC continues to reiterate that downside risks to US growth remain considerable due to ongoing developments in Europe. Were the European situation to worsen, Bullard said the Fed could easily re-open many of the liquidity facilities used during 2008-09 to stabilize the financial system and broader economy.

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7^th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

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Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd