This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forecasters Upbeat On W.Va. Economy, Except Coal

Under the forecast offered Thursday, unemployment is expected to average 7 percent this year. While a 5.6 percent rate would mark a significant improvement from that, and from the recession high of 8.5 percent in 2010, it's still higher than the pre-recession rate of 5 percent in November 2008.

Even the economy's bright spots also have downsides. Construction, for instance, is rebounding after annual job losses averaging 3.6 percent since 2006, Speaker said. West Virginia's hospitals will face increasing pressure to consolidate because of more federal regulations, eroding cash reserves and uncompensated care that totaled $742 million in 2010, said Thomas Jones, president and chief executive of West Virginia United Healthcare System.

Nationally, the economy should grow by 2.2 percent next year, said Jeffrey Lacker, president of the Federal Reserve Bank of Richmond and the conference's featured speaker. That rate could increase if there's "meaningful progress" on the federal budget and the national debt. Lacker expects such actions in the wake of the general election.

"Until we get a fiscal plan that's sustainable, consumers and businesses are going to be making decisions under this immense cloud of uncertainty," Lacker said. He added, "We're going to have to see convincing progress."

Lacker has repeatedly objected at recent Federal Reserve meetings that its continuing policy steps could lead to higher inflation. Those steps include low short-term interest rates and the buying of mortgage bonds to push long-term interest rates lower and make home buying more affordable. Lacker on Thursday called those "lazy steps" that overplay the role of monetary policy in spurring economic growth. He said the time has come to increase interest rates and halt the buying of assets.

"We have the tools we need to withdraw monetary stimulus rapidly enough to avoid inflation," Lacker said.

____

Follow Lawrence Messina at http://twitter.com/lmessina

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs