Fed official: Triangle a ‘shining star’ | WRAL Tech Wire

RALEIGH- The President and CEO of the Federal Reserve Bank of Richmond believes the economy is doing well.

That’s despite feelings that the U.S. economy was on the brink of an economic recession just two months ago, Tom Barkin said at a Thursday event sponsored by Wake County Economic Development.

Now, however, Barkin thinks the economy is showing signs of strength.

Indeed, recent jobs and employment data show that the US economy is creating jobs and the labor force participation rate is rising again, which could be a key factor in a “soft landing” of the economy.

There are still mixed signals in the domestic economy, with stock indexes falling and mortgage rates rising. Still, Barkin’s remarks underscored a belief that a recession may not be imminent, as others, including JPMorgan Chase chairman and CEO Jamie Dimon, may believe.

Dimon also spoke at an event in the Triangle on Thursday, as JPMorgan Chase plans to continue its expansion and investments in North Carolina.

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Consumer confidence and the future of the economy

One metric the Fed official mentioned was that consumer confidence is higher and more positive than some would otherwise assume, with concerns about inflation, stock market volatility and layoffs grabbing headlines these days. recent weeks and months.

Still, even as the economy shows more signs of strength, Barkin noted in his remarks that inflation will remain a key target and that the Federal Reserve will continue to take aggressive action to secure price appreciation for consumer goods like food, housing and energy under control.

“No matter what theory you have about inflation, you’re seeing promising signs,” Barkin said in a speech at the Potomac Science Center on the George Mason University campus in Woodbridge, Va., Friday morning. day after the event in Raleigh. .

“Inflation is expected to come down. But I don’t expect its decline to be immediate or predictable,” Barkin said in Friday’s speech. “We’ve been through multiple shocks, as I said, and big shocks just take time to fade away.”

Barkin said the Federal Reserve would persist until inflation subsides. But it could have an impact on the economy.

One of these impacts: a recession.

And on Thursday, Dimon said a recession is “likely” imminent after a flurry of economic news signaling volatility in the U.S. economy.

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Triangle a “shining star”

But one thing Dimon and Barkin can agree on is that the Triangle is well positioned within the overall US economy.

“Obviously North Carolina is a great state. The Triangle is one of the fastest growing regions in America,” Dimon told Sarah Krueger of WRAL TV on Thursday. and growth and universities and business.It has everything you need.

And statewide, the latest unemployment numbers show North Carolina ahead of the national average, with counties in the Triangle region showing very low unemployment rates.

Meanwhile, the region continues to attract investment, with a diverse group of industries. For example, a newly renovated campus at RTP, bought for $37 million three years ago, sold for more than $288 million.

In fact, the Triangle is considered a “shining star,” Barkin said.

This is because the area continues to attract immigration of talented workers who settle in the area and will become part of the local economy, Barkin explained.

– WRAL reporters Joel Davis and Sarah Kruger contributed to this story