The St. Johns County Chamber of Commerce convened for its quarterly Economic Development Council Breakfast on Friday, December 6, in St. Augustine, where discussions centred on economic forecasting and evolving business trends. David Altig, the executive vice president and chief economic advisor at the Federal Reserve Bank of Atlanta, was the featured speaker, providing insights into the current and anticipated state of the economy.
Altig's address covered several key areas including the latest monetary policy from the Federal Reserve, inflation's local impact, and broader national economic forecasts. He made it clear that while forecasting inherently involves uncertainty, he described the current economic situation as “rock solid,” despite previously expected weaknesses. "The economy is remarkably robust even in the face of historically rapidly tightening monetary policy," he asserted, highlighting the resilience of economic activity during an election year, which typically can impose greater volatility.
During his presentation, Altig also clarified the role of the Federal Reserve, stating that it does not influence policy directly but instead acts as a “taker” of policy, responding to decisions made in Washington, D.C. He outlined that each new administration brings with it shifts in policy, which may include implications such as tariffs that could inhibit spending if they lead to increased prices.
A significant theme of the breakfast was the rising role of artificial intelligence (AI) in business and industry. Altig pointed out that while the expansion of AI technology has attracted attention, current data indicate that the majority of unskilled jobs remain unaffected by these advancements, and only a small number of high-skill workers are leveraging AI substantially. This observation emphasises a transitional phase in labour dynamics as businesses adapt to new technologies.
Furthermore, despite a recent softening in the labour market, Altig noted that productivity levels continue to remain high. He attributed part of this stability to immigration contributing to a balanced labour force, which helps to mitigate pressure on wage inflation amidst declining birth rates among U.S. citizens.
As businesses prepare for an evolving economic landscape, the insights shared by Altig at the St. Johns County Chamber of Commerce event provide a framework for understanding both current trends and future projections in the context of an increasingly automated environment.
Source: Noah Wire Services