Charles Evans predicts Japanese disasters will affect global supply
The U.S. economy is in its second year of recovery, President and Chief Executive Officer for the Federal Reserve Bank of Chicago Charles Evans told a group of USC business school students and professors Monday.
“When we look at the past two years as a whole, the improvements have been disappointing,” Evans said in his speech. “Too many people remain unemployed — and some for extended periods — and too many businesses have not yet returned to full operations.”
Evans said he was unsure of the financial progress in the Southeast, but he considers it part of the national recovery, even with an unemployment rate of 10.2 percent.
“The nation’s [projected] 4-percent growth rate will lead to improvement in labor markets, which will be slower than people would like,” Evans said.
Nationally, Evans predicted that the ripple effects from Japan will affect the global supply chain, specifically automobile and electronic fields.
“It’s too early to asses the ultimate economic cost of these events to the Japanese and U.S. economies,” Evans said. “However, certain segments of the U.S. economy that rely on goods imported from Japan will see interruptions in their supply chains, at least in the short run.”
Overall, Evans said that business is doing well due to the current consumer’s focus on productivity.
For graduating college students, Evans said he advises students to embrace mistakes.
“It’s a real challenge for new students. What I would say is that everyone should apply themselves. The first job really sets the stage for progress, but even if that doesn’t happen, there are still plenty of options open.”
After graduating from the University of Virginia, Evans said he held three jobs between undergraduate and graduate school that did not lead to significant progress to his current career.
“It’s a difference work force environment today, but it’s important to keep applying yourself.”