Fed’s Stern: Expects Some Econ Improvement Midyear
Gary Stern who has been through the previous two recessions as head of the Minneapolis Federal Reserve Bank offers a few words of encouragement towards the possible end of the current recession. As we have discussed in class it is hard to predict when recessions end and the economy picks up again, and normally don't have evidence until well after the event takes place. That being said, as the first quarter of draws to an end there seems to be initial signs that by midyear things could be turning around. March seemed to be a great month for the Dow-Jones-finding many stocks hitting lows and now rebounding well. Other reports show that while many retailers have offered, and continue to offer great deals, their are faint signs that pickup in the consumer spending trend should continue. With the G-20 summit looming with loud cries from several governments calling for increased regulation over companies with multinational financial risks, time will tell how strong this possible turnaround may be.