We’re in the midst of “The Great Rebalancing,” and we’ve still got a ways to go, according to Atlanta Federal Reserve President Dennis Lockhart.
Speaking today, Lockhart ou lined this period in American history as the sequel to “The Great Moderation” we experienced between 1984-2007, in which confidence grew, investors took on too much risk, and the “The Great Recession” resulted.
But now, in “The Great Rebalancing,” the U.S. economy is rebuilding itself in three key ways, according to Lockhart.
- Households are paying down debt, saving more, and consuming less
- Public budgets must be cut, and most of that has yet to come
- The U.S. economy is being re-regulated, to prevent “The Great Recession” from reoccurring
Lockhart sees the reason in the opinion that new regulations may be going too far, but also feels their recreation is important.