The economy from the eyes of a Fed banker

Tuesday was a pretty interesting night for a business reporter like myself. At one venue, I had an opportunity to see the economy through the eyes of both a Fed banker and college students.

While their lifestyles are near polar opposites, the results were surprisingly similar.

For maybe the first time since the housing bust crippled Southwest Florida's economy, area college students said they're excited about the job market they're about to enter. On top of it, Atlanta Fed President and CEO Dennis Lockhart (pictured) told them to expect things to improve further -- albeit slowly.

The job market was among a number of economic indicators Lockhart discussed in his economic forecast Tuesday night at New College of Florida, as I reported in my story for today's Bradenton Herald.

In all, he predicts 2.5 to 3 percent growth in 2012, and unlike some of his colleagues who also help set the country's monetary policy, he's not concerned about the effects ongoing recovery efforts could pose on inflation.

That optimism, however, won't be enough to budge the Fed's historically low rates until late 2014 -- likely keeping interest rates down across the board, from home mortgages to auto loans and savings accounts, Lockhart said.

The most pessimistic of the night: retirees attending the event who're living solely off  their lifetime savings and the interest it collects. For them, the Fed's decision, guided by Lockhart, means less early bird specials and rounds of golf.

So, where do you stand? Is Lockhart correct in his assessment? Will low Fed rates lift the economy? And are college students out of their mind for seeing potential in this job market?

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