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Repeats Story Initially Transmitted at 19:00 GMT Mar 29/15:00 EST Mar 29
By Jean Yung
WASHINGTON (MNI) - The following are the key points from Federal Reserve
Bank of San Francisco Executive Vice President and Director of Research Mary
Daly in her speech Thursday at the Land Economics Society in Phoenix, Ariz.:
- She focuses on labor market improvement through better education as a way
to lift longer run GDP growth, currently envisioned by economists to be just 2%
for the foreseeable future. "The United States has considerable room to run in
actively engaging working age people in the labor market. Investing on this
front is a lever we can pull that changes the fundamentals of economic growth
and gives us an opportunity to raise the speed limit."
- Labor force growth is expected to remain stuck at 0.5% for the next
decade as baby boomers retire and the fertility rate slows. That means that
absent a surge in productivity, it would restrain the economy's speed limit
- Unique among developed nations, U.S. labor force participation rate has
declined. Daly mentions several theories: wealthy families choosing only to have
one wage earner, the hollowing out of middle skill jobs due to automation, and a
lack of appropriate skills training.
- By 2020, more jobs will require a college degree than a high school
diploma, but fewer young Americans have college degrees compared to other
countries. "Working to equalize educational attainment across students of
different races and ethnicities" could be a starting place for getting more
young people into college.
- As executive vice president of the San Francisco Fed, Daly has attended a
number of FOMC meetings alongside President John Williams and could be appointed
interim president of the bank if Williams becomes president of the New York Fed.
She is a labor economist by training.
--MNI Washington Bureau; +1 202-371-2121; email: email@example.com