New Kansas City Federal Reserve President and CEO Esther George was the keynote speaker for the MSBF annual meeting Feb. 7. Her parents were among among the audience.
Esther George, the recently appointed president and CEO of the Federal Reserve Bank of Kansas City, forecast continuation of a “bumpy” recovery for the nation’s economy during a Feb. 7 speech to the Midwest Small Business Finance annual meeting.
“There remain risks, especially global risks,” George told the assembly of more than 100 bankers, business and government leaders at Harrah’s North Kansas City. “I think we are in a sustainable recovery and I expect that to continue.”
George said the seriousness of the recession was due to its combination of causes, including the housing bubble and over-extended debt by everyone from consumers to banks and businesses. While de-leveraging continues, she noted businesses are making important moves.
“Business investment continues to be strong,” she noted. “Business are not hiring, but they are up-grading equipment and technology to position themselves for growth. That’s especially true of small business.”
George noted a rally in early 2011 was stymied by oil price increases, the Japanese earthquake and European economics. Foreseeable concerns for 2012 include continued U.S. debt and Europe’s economy. She predicted that balancing the nation’s fiscal policy would also be difficult issue, with long-term inflation a concern. The jump in farmland prices spurred by easily leveraged investment is one example.
“Is that a bubble?” she asked. “Only time will tell, but there may be other sectors at risk.”
MSBF President Reuben Siverling opened the meeting by noting the organization’s outstanding year in 2011. MSBF was named the top Certified Development Corporation by the Small Business Administration and was one of only 20 not-for-profit organizations in the nation selected for a new loan program.
George took office on Oct. 1, 2011, succeeding Thomas Hoenig, who retired due to age restrictions for Reserve Bank presidents.