Wednesday September 16, 4:18 pm Eastern Time
St. Louis Fed's Poole sees balanced econ, no gloom
ST. LOUIS, Sept 16 (Reuters) - The U.S. economy is balanced, with no reason to fear either rapid inflation or a
major growth slowdown in the foreseeable future, said William Poole, president of the Federal Reserve Bank of St.
Louis. Over a one-year horizon, ''I don't see there being any significant problem of a large increase in inflation or a
large decline in output,'' Poole told reporters after a speech to the National Association of Business Economists' local
chapter.
''I think that the situation is fairly evenly balanced. If it were really obvious which way it were going to go, I think the Fed would've already moved''
interest rates, Poole added.
Poole cautioned against excessive worrying over the impact the current economic turmoil in Asia, Russia and Latin America might have on the United
States.
''Let's be careful not to have an excessive gloom-and-doom view here,'' he said.
While conceding the Asian slowdown would inevitably hit the United States economy, Poole said the impact would be a mix of positive and negative
forces.
''It's a wash. We have conflicting influences,'' with reduced exports to the region mitigated somewhat by declining oil prices and lower interest rates,
Poole said.
Some U.S. industries will suffer more than others -- notably farmers and farm equipment makers, Poole said, though he added that the net impact was
unclear.
''I think it's still an open question on what the net effect will be on the U.S. economy,'' he said. |
