(Okoboji)– Is the worse over for the downturn in the U.S. economy? A Chief Economist and Senior Market Strategist with the Bank of America thinks so. Lynn Reaser was the keynote speaker at today’s (Wed.) opening session of the Iowa Association of Business and Industry’s annual convention in Okoboji. She sites several reasons for the optimism, including a very accomodating monetary policy with low interest rates; a big tax cut and a weaker dollar.
Having said that, Reaser is quick to point out there are still several risks out there that must be closely monitored. They include increases in oil and natural gas prices; weak growth abroad; terrorism; and the fact that companies remain very cautious and are reluctant to take on additional workforces and/or increase capital spending.
And when it comes to interest rates, Reaser expects Allen Greenspan, head of the Federal Reserve, will announce another reduction this coming Tuesday when she and other members of the American Banking Committee meet with him to talk about regional economies and their outlooks.
The Iowa Association of Business and Industry is holding its convention through Thursday at Village East Resort in Okoboji.
This year marks the association’s 100th anniversary.
