Economic growth will be moderate this year as the nation still faces headwinds — specifically housing and unemployment, Federal Reserve Bank of Cleveland president Sandra Pianalto said Tuesday.
“I see a moderate recovery path continuing for both the nation and our region, and I am optimistic about our economic future,” Pianalto told Summa Hospitals Women’s Board, according to prepared text of her remarks released by the Fed.
“The key to our long-term prosperity is to increase productivity,” she said. “This will lead to both higher incomes and a greater standard of living. Research at my bank shows that education and innovation are fundamental drivers of this process.”
Pianalto said the region is moving in “the right direction,” becoming more innovative, and bringing those innovations to the market, “ultimately creating new businesses and new jobs.” However, she added: “Our educational attainment in particular is clearly lagging.”
