RALEIGH – The President and CEO of the Federal Reserve Bank of Richmond believes the economy is showing strength.
And that’s despite feeling the US economy was on the brink of an economic recession just two months ago, Tom Barkin said at an event Thursday sponsored by Wake County Economic Development.
Now, however, Barkin believes the economy is showing signs of strength.
That’s because the latest jobs and employment data show the US economy is adding jobs and the labor force participation rate is picking up again, which could be a key factor in a “soft landing” for the economy.
The economy continues to show mixed signals with falling equity indices and rising mortgage rates. Still, Barkin’s comments hinted at a belief that a recession might not be imminent, as others, including JPMorgan Chase chairman and CEO Jamie Dimon, might believe.
Dimon also spoke at an event at the Triangle Thursday as JPMorgan Chase plans further expansion into North Carolina and investments in North Carolina.
Mixed economic signals: GDP falls, stocks tumble, mortgage rates rise, but jobs remain strong
Consumer confidence and the future of the economy
One measure the Fed official was referring to was that consumer confidence is higher and more positive than some would otherwise assume, as concerns about inflation, stock market volatility and layoffs have dominated the headlines for the past few weeks and months.
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 contain price increases on consumer goods such as food, housing and energy bring control.
“Whatever theory you have about inflation, you see promising signs,” Barkin said in a speech delivered Friday morning, the day after the Raleigh event, at the Potomac Science Center on the campus of George Mason University in Woodbridge, Virginia. was held .
“Inflation should come down. But I don’t expect an immediate or predictable drop,” Barkin said in Friday’s speech. “We’ve been through several shocks, as I mentioned, and it just takes time to absorb significant shocks.”
Barkin said the Federal Reserve will remain in place until inflation comes down. But that could have an impact on the economy.
One such impact: a recession.
And on Thursday, Dimon said a recession was “likely” imminent after a spate of economic news signaled volatility in the US economy.
Chase CEO: Recession ‘probably’ imminent, ‘but fingers crossed’
triangle a “shining star”
But one thing Dimon and Barkin might agree on is that the triangle is well positioned within the broader US economy.
“Of course North Carolina is a great state. The Triangle is one of the fastest growing parts of America,” Dimon told WRAL TV’s Sarah Krueger on Thursday. “It has innovation and growth and universities and corporations. It has everything you need.”
And nationally, the latest unemployment numbers show North Carolina is ahead of the national average, with counties in the triangle reporting very low unemployment rates.
Meanwhile, the region continues to attract investment with a diverse set of industries. For example, a recently renovated campus in RTP purchased three years ago for $37 million has sold for more than $288 million.
In fact, the triangle is considered a “shining star,” Barkin said.
That’s because the region continues to attract talented workers who move to the region and become a part of the local economy, Barkin explained.
– WRAL reporters Joel Davis and Sarah Kruger contributed to this story