The Fed Speaks Out

Andrew Bauer, Senior Regional Economist at the Baltimore Branch of the Richmond Federal Reserve Bank informed Real Professionals Network members that the economy is, for the most part, on the upswing.

“When I look at the overall economy I’m fairly positive,” he said. “The fundamentals supporting consumer spending have just gotten stronger. “

In D.C. in particular, the federal hiring freeze enacted by President Trump may impact the region, but job growth is up and new businesses are launching in professional business services (which covers IT, R&D, office work, and engineering, among other things), as well as in education, health and leisure/hospitality. Those are all strong signs pointing to a robust local economy.

Bauer was cagey on what the Fed intends to do with interest rates (as per Fed policy) but did hint: “Someone could say we’ve met our target with respect to inflation and unemployment, so therefore it’s time to change the rate,” he said.