N.Y. Fed president: Recovery may be on firmer footing, but headwinds remain

SYRACUSE — Despite more upbeat data in recent months, the U.S. economy still faces some serious challenges ahead, the president of the Federal Reserve Bank of New York said today in Syracuse.

William Dudley was at the Tech Garden this morning to speak on national and regional economic conditions. He will speak today at Syracuse University as well and visit Skaneateles Falls–based Welch Allyn, a medical device manufacturer.

Dudley will visit Buffalo tomorrow.

Dudley noted that despite job gains in recent months and a 3 percent annual growth rate in real gross domestic product in the fourth quarter, it is too soon to say the U.S. economy is out of the woods, according to a transcript of his comments released by the Fed. Challenges ahead include rising gas prices, continued weakness in the housing market, and fiscal drag at the federal, state, and local levels, he said.

Regionally, upstate New York, including Syracuse, fared better during the recession than other parts of the country. Employment fell by a little more than 4 percent, which is just two-thirds of the decline that occurred nationally, Dudley said in the transcript.

The area’s housing market has also remained strong. Home prices, he said, have actually increased in Syracuse by close to 10 percent since 2006. That compares with a decline of more than 30 percent nationally.

Job growth, Dudley added, has remained somewhat weak in the area. To date, the region has only regained a third of the 13,000 jobs lost during the recession.

Sectors that have expanded include business services and leisure and hospitality. The region’s hospitals and universities also provide a solid base for growth, Dudley said.

Contact Tampone at ktampone@cnybj.com