Texas economy isn't really bulletproof; Fed leader alerts of 'cracks in the armor'.
Increasing the number of residents eligible to work is vital in keeping Texas economy in growth mode and education plays a crucial role in that, Federal Reserve Bank of Dallas President Robert Steven Kaplan said Tuesday.
Kaplan, speaking at an Austin Chamber of Commerce luncheon at the Hilton went to by 350 people, stated the problem is particularly common amongst Texas' Hispanic population and is among the few cracks in the armor of a state economy that has actually diversified since the 1980s.
We’re dragging in this ... what we call academic achievement, he stated. The secret to the state's economy is the workforce population development. Education is main and something we can do something about.
Kaplan, a previous Harvard Business School teacher and 23-year Goldman Sachs Group Inc. executive, was selected president of the Dallas Federal Reserve Bank in September 2015. He started his 45-minute question-and-answer session with Pipeline Success Inc. CEO Steve Vandegrift by recounting an early Texas connection when adulting in Kansas and making business journeys to the state with his father, who was a precious jewelry salesman.
Kaplan stated the varied economy paired with migration of employees and tasks to Texas and Austin have insulated them from an economic downturn.
This is a very healthy city, he said. We’re really positive about the city of Austin and the fast-growth prospects for Austin.
Nationally, Kaplan said economists are considering an unduly speculative commercial property market and the involvement rate of the American population. It’s now down around 60 percent compared with 66 percent in 2008. Such a trend is not a favorable indicator for the gross nationwide product.
Concerning the interest rates set by the Fed in Washington, D.C., Kaplan stated he considers himself a centrist who makes decisions based on elements instead of being an ideologue. I’d rather see interest rates move purposely, he stated, however keep progressing.
The Federal Reserve Bank of Dallas, which includes Texas, northern Louisiana and southern New Mexico, runs branches in El Paso, Houston and San Antonio. It is one 12 local banks in the Federal Reserve System.
Last week, the Dallas Fed exposed that Texas added 4,500 tasks in February, according to seasonally adjusted and benchmarked payroll employment numbers. The state added a revised 23,700 jobs in January. Jobs have actually grown at an annualized speed of 1.4 percent during the first 2 months of the year after growing 1.5 percent in 2015.
The Texas work projection stands at 0.7 percent growth for 2016, recommending 88,400 tasks will be included Texas this year, the Fed disclosed.
Kaplan was also scheduled to speak at the University of Texas McCombs School of Business on Tuesday afternoon.
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