Regional President Speech

SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 1 5-TK c3 Jry'+~ I. INTRODUCTION - cxe&4C( A. FED VERY INFORMATION SENSITIVE 1. BOARDS -- MEETINGS 2. ADVISORY COUNCILS B. I WILL START OUT WITH SOME BROADER COMMENTS REGARDING ECONOMY. 1. PETER HEFFERNAN -- MORE SPECIFIC REGARDING AGRICULTURAL ECONOMY. II. STARTING WITH A BROADER LOOK AT THE ECONOMY A. HAVING JUST STARTED THE NEW YEAR AND NEW DECADE, APPROPRIATE TO TAKE A QUI CK LOOK BACK AT THE DECADE OF THE 80S. 1 1. COMMENT ON THE MAJOR DEVELOPMENTS OF THAT DECADE. 2. WHAT THEY MAY SUGGEST FOR THE 1990S. I I I. IN THE CLEAR LIGHT OF HI NOS I GHT, THE DECADE WAS INCREDIBLE AND WAS ONE OF SIGNIFICANT CONTRADICTIONS. A. THE BUILD-UP OF SOME MAJOR IMBALANCES ON ONE HAND 1. ACCOMPANIED BY STRIKING CHANGES IN OUR INDUSTRIAL AND FINANCIAL STRUCTURE 2. AS WELL AS A VERY FUNDAMENTAL CHANGE IN THE POSITION OF THE U.S. IN THE WORLD ECONOMY. B. YET, ON THE OTHER HAND, IN AN ECONOMIC SENSE SOME VERY REWARDING AND SIGNIFICANT ACHIEVEMENTS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 2 1. DECADE ENDED WHILE WE CONT I NUE IN LONGEST PEACETIME EXPANSION IN HISTORY. C. WE CAME INTO THE '80S 1. WITH THE INFLATION HANGOVER OF THE LATE 1970s. A. 13% IN 1979. B. EVEN WORSE, THE EXPECTATIONAL FACTOR C. RESULTED IN SEVERE DISTORTION INDUSTRIAL/FINANCIAL SECTORS D. PUT FUTURE OF OUR ECONOMIC STABILITY AND GROWTH AT SIGNIFICANT RISK 1) NOT JUST A NATIONAL ISSUE SIGNIFICANT INTERNATIONAL RAMIFICATIONS. 2. IMPERATIVE THAT WE BRING THIS DEBILITATING INFLATION ELEMENT UNDER CONTROL -- AND WE DID. A. IN THE PROCESS INTEREST RATES SKY-ROCKETED -- ENDED THE DECADE OF THE '70S ON A TURBULENT NOTE. 3. STARTED THE '80S WITH TWO RECESSIONS BACK-TO-BACK. A. 1982 -- THE LARGEST DECLINE IN ~0 YEARS. B. PARTICULAR IMPACT ON THE MANUFACTURING SECTOR IN THE MIDWEST Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 3 C. AND THEN THE MASSIVE READJUSTMENT IN THE AGRICULTURAL SECTOR. 4. INFLATION CAME DOWN ALL TOO SLOWLY. A. DID NOT MAKE REAL PROGRESS UNTIL THE MID-1980S. 5. THE DOLLAR SOARED, RISING SOME 85% FROM THE BEGINNING OF THE DECADE UNTIL THE PEAK LEVEL. A. WE LOST OUR COMPETITIVE POSITION IN THE WORLD MARKETS AND TO SOME CONSIDERABLE EXTENT IN OUR OWN DOMESTIC MARKETS. B. PARTICULAR MEANING FOR AG ECONOMY. D. LED BY GROWING CONSUMPTION, WE MOVED OUT OF THE RECESSION INTO THE RECOVERY IN LATE 1982. 1. THIS CONSUMPTION FED BY IMPORTED PRODUCTS. A. OUR TRADE ACCOUNT MOVED INTO A DEFICIT POSITION. 2. WE ACCUMULATED A TRADE DEFICIT OF ABOUT $900 BILLION DURING THE DECADE. A. SHIFTED FROM BEING THE WORLD'S LARGEST EXTERNAL CREDITOR TO THE WORLD'S LARGEST EXTERNAL DEBTOR. B. NOW OVER $600 BILLION. _,, f ;,. " - 1. . ., v 1 t , ,u~..> 1 C. BECAUSE OF LOW PRIVATE -SER\' I N"£S AND LARGE PUBLIC DEMANDS BECAME DEPENDENT ON FOREIGN FUNDS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 4 IV. MEANWHILE, OUR ENTIRE ECONOMIC STRUCTURE BECAME LEVERAGED AS PUBLIC AND PRIVATE DEBT SOARED. A. FEDERAL BUDGET DEFICITS CONT I NUED AT MORE THAN $200 BILLION THROUGH 1986. 1. ON A NET BASIS (AND GIVEN THE CURRENT FOCUS ON SOCIAL SECURITY REVENUES I LL EMPHASIZE I NET) THE DEFICIT HAS COME DOWN QUITE SLOWLY. 2. THE FEDERAL DEBT ROSE BY MORE THAN 2-1/2 TIMES IN THE DECADE A. GO I NG FROM $750 BI LL I ON TO ABOUT $2.9 TRILLION. 1. ENORMOUS INCREASE IN PUBLIC DEBT. B. CONSUMER DEBT ROSE RAPIDLY. 1. INSTALLMENT LOANS REACHED NEW PEAKS AND HAVE CONTINUED AT CONSISTENTLY HIGH LEVELS. 2. CONSUMER VERY VULNERABLE. A. RISING DELINQUENCY RATES. C. CORPORATE DEBT ALSO ROSE DRAMATICALLY. 1. FUELED BY MERGERS, TAKEOVERS, LEVERAGED BUY-OUTS AND THE LIKE. A. BUS I NESS DEBT MORE THAN DOUBLED BY ABOUT $2 TRILLION. 2. NET EQUITY HAS ACTUALLY BEEN REDUCED AS CONSOLIDATED DEBT HAS RISEN Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 5 A. RESULT I NG IN HI STOR I CALLY AND PERHAPS DANGEROUSLY HIGH DEBT RATIOS. 3. CURRENT TRAUMA IN THE JUNK BOND MARKET AN EARLY INDICATION OF VULNERABILITY. A. ANOTHER P-elsf!H, fAI: ELEMENT INSTABILITY. V. THROUGHOUT THE DECADE, WE EXP ER I EN CED AN UNENDING SERIES OF FINANCIAL STRAINS. A. A HIGH LEVEL OF FAILURE AND DEF AUL TS BY CORPORATIONS AND PEOPLE EARLY IN THE DECADE 1. RESULTING FROM THE VERY SERIOUS ECONOMIC RECESSION. 2. BANKRUPTCY -- ALMOST ACCEPT ABLE BUS I NESS STRATEGY. B. NUMBER OF GOVERNMENT SECURITIES DEALERS EXPERIENCED PROBLEMS AND FAILED. C. AGRICULTURAL CREDIT PROBLEMS EMERGED. 1. FIRST, RESULTING FROM COLLAPSING LAND VALUES 2. THEN THE DROUGHT. 3. CONCERNS ABOUT FARM CREDIT SYSTEM. D. COMMERCIAL BANKS AND OTHER LEND I NG I NS TI TUT IONS FACED WITH VERY LARGE EXPOSURES IN THE OIL AND REAL ESTATE SECTORS WENT THROUGH A DIFFICULT PERIOD Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 6 1. AND WE EXPERIENCED THE LARGEST NUMBER OF BANK FAILURES SIJ)ICE THE 1930S . ________ ·-···-·-··- ~·· ~~[.}J.lRTIJAL 5,0:LiAPSE OF THE THRIFT INDUSTRY. I ----;_ LEGISL~Ek------ D. ADDITIONAL STRAINS FROM THE PERIODIC REFINANCING OF THE EXTERNAL DEBTS OF MAJOR LESSER-DEVELOPED COUNTRIES 1. PUT PRESSURE ON THE WORLD'S FINANCIAL SYSTEM. E. AND FINALLY, AS THE DECADE WAS COMING TO A CLOSE -- 1. THE VERY LARGE DECLINE IN THE STOCK MARKET OF OCTOBER 1987 -- LARGEST SINCE THE 1920S. A. TO THE SURPRISE OF MANY -- NO RECESSION. 2. A MINI-REPEAT LAST OCTOBER. VI. IN SPITE OF THIS LITANY OF REALLY SERIOUS PROBLEMS AND DIFFICULTIES -- THERE WAS THIS CONTRADICTION THAT I NOTED, THE 80S WAS ECONOMICALLY A VERY SUCCESSFUL AND 1 A HIGHLY REWARDING PERIOD. A. NOW WELL INTO THE 8TH YEAR OF EXPANSION. 1. LONGEST IN PEACETIME HISTORY. B. NOT ONLY LONG, BUT A STRONG CYCLE AS WELL. 1. ALL OF THE MAJOR INDICATORS AT RECORD LEVELS. C. EMPLOYMENT GA I NS HAVE BEEN MOST IMPRESS I VE, PERHAPS THE MOST EXCITING PART. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 7 1. WE'VE ADDED OVER 20 MILLION JOBS -- 20% INCREASE -- AS UNEMPLOYMENT RATES HAVE COME DOWN TO WHAT NOW MAY BE DESCRIBED AS FULL EMPLOYMENT LEVELS. 2. THE BIG INCREASE IN EMPLOYMENT ON THE SERVICE SIDE, BUT NOT MINIMUM WAGE JOBS, AND THERE HAS BEEN A WEALTH GAIN. 3. IN THE MANUF AC TUR I NG SI DE, MORE MODEST EMPLOYMENT GAINS HAVE BEEN ACCOMPANIED BY VERY SIGNIFICANT PRODUCTIVITY GAINS. A. MANUF AC TUR I NG PRODUCT I ON UP MORE THAN 30% DURING THE DECADE. 1} WE ARE ONCE AGAIN COMPETITIVE AND IN AN INCREASINGLY COMPETITIVE WORLD. 4. THE SURPRISE OF THE DECADE A. IS HOW WELL THINGS WORKED OUT IN SPITE OF THE MASSIVE BUILD-UP OF IMBALANCES AND PROBLEMS THAT DEVELOPED. VII. NO EASY EXPLANATION TO THIS SEEMING CONTRADICTION. A. WHILE THE WORLD'S ECONOMIC STRUCTURE TOO COMPLEX FOR SIMPLE EXPLANATIONS 1. SOME DO STAND OUT AS HAVING BEEN PARTICULARLY IMPORTANT. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 8 B. FIRST, THE EXCESSIVE INFLATION RATE AT BEGINNING OF DECADE 1. HAD DISTORTED ECONOMIC RELATIONSHIPS THROUGHOUT THE ECONOMY. 2. ABSOLUTELY IMPERATIVE TO REMOVE DISTORT IONS OF INFLATION -- AND WE DID. 3. I'LL COME BACK TO THIS ISSUE AT THE END. C. SECOND, THE DECADE OF 1980 S PER I OD OF RAPID 1 LIBERALIZATION AND DEREGULATION OF FINANCIAL MARKETS. 1. AJINNOVATION OF NEW SERVICES. 2. JUST CONS I DER THE I NCR ED IBLE RANGE OF NEW SERVICES AND ACTIVITIES AT THE TWO CHICAGO EXCHANGES. D. THIRD, SIGNIFICANT GLOBALIZATION AND INTERNATIONALIZATION OF THE WORLD'S TRADE AND FINANCIAL MARKETS. 1. THE BARR I ERS OF THE 50 s, 60 s, EVEN 70 s 1 1 1 LARGELY ELIMINATED. 2. WITH SOME EXCEPTIONS, CAPITAL, FINANCIAL TRANSACT IONS AND PRODUCTS MOVE REASONABLY EASILY ACROSS BORDERS. E. THESE TRENDS OF LIBERALIZATION AND GLOBALIZATION NOT NEW TO THE DECADE Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 9 1. BUT CERTAINLY ACCELERATED DURING THE 80'S. 2. IMPACT OF TRENDS HAS BEEN TO INCREASE COMPETITION SIGNIFICANTLY. VIII. BECAUSE OF THIS GLOBALIZATION A. WE HAVE BEEN ABLE TO RUN FISCAL AND MONETARY POLICIES ON SEPARATE PATHS 1. WITHOUT BALANCE BETWEEN THE TWO -- INDEED _ r .. 5~UR~12JJ~OR~::," , .• J o'. «(J c'f'", 'U)Ci _ /ca:s: hz t?;: V.Jt B. WITHOUT THE INTEGRATION OF THE WORLD'S FINANCIAL MARKETS, FINANCING THE FEDERAL BUDGET DEFICITS RE SUL TING FROM THE EXPANSIONARY FISCAL POLICY WOULD NOT HAVE BEEN POSSIBLE. 1. THE FINANCING PROCESS WOULD HAVE PUT UPWARD PRESSURE ON INTEREST RATES RESTRAINING ECONOMIC GROWTH A. BY BORROWING FROM ABROAD WE REDUCED OR ELIMINATED THE CROWDING OUT THAT WOULD HAVE OCCURRED DOMESTICALLY. 2. IN EFFECT, OUR HIGH LEVEL OF DOMESTIC CONSUMPTION HAS BEEN FUNDED BY FOREIGN SAVINGS -- THE I NT ER NAT I ONAL MARKE TS HAVE BEEN THE CONDUIT FOR THIS. C. IN OTHER WORDS, FINANCIAL GLOBALIZATION HAS BEEN THE CRITICAL ELEMENT. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 10 1. BUT THIS IS A TWO-EDGED SWORD. A. AND THE RECENT INCREASE IN OUR MED I UM AND LONG-TERM INTEREST RATES IN AMOUNTS ALMOST EXACTLY EQUAL TO THE RATE INCREASES IN GERMANY, JAPAN AND THE U. K. -- I ND I CAT I VE OF HOW DEPENDENT AND INTERRELATED WE HAVE BECOME. 2. NOW THE LARGEST DEBTOR NAT I ON -- AND WE RE I GOING TO HAVE TO PAY FOR THIS. 3. THE DEBT HAS SUPPORTED CONSUMPTION -- NOT PROVIDED FOR INVESTMENTS THAT WOULD HAVE GENERATED EARNINGS TO SERVICE THE DEBT. A. LEFT WITH DEBT -- BUT WITHOUT MEANS TO PAY IT. 4. THIS HAS SOME SIGNIFICANT IMPLICATIONS FOR OUR STANDARD OF LIVING. A. ONLY JUST BEGINNING TO EMERGE, BUT WILL BECOME INCREASINGLY APPARENT. IX. MOVING TO THE 1990S -- WHAT DOES ALL THIS MEAN FOR THIS NEW DECADE? A. AT THE OUTSET (A MINI-FORECAST) A CONTINUATION OF OUR MOST RECENT ECONOMIC EXPERIENCE. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS DAY 1 MARCH 7, 1990 - PAGE 11 1. MODERATION IN GROWTH IN THE EARLY PART OF TH IS YEAR WI TH SOME INCREASE IN ECONOMIC ACTIVITIES IN THE LATER HALF OF THE YEAR - NO RECESSION. A. 4Q/4Q SOMETHING MORE THAN 2%. 2. IMPORTANTLY, A MODERATION IN THE RATE OF INFLATION. A. BY END OF YEAR DOWN TO 4% OR PERHAPS EVEN UNDER. B. BUT BEYOND 1990 AS WE GET FURTHER INTO THE DECADE, WE WILL HAVE TO FACE UP TO THE IMBALANCES I VE ENUMERATED. 1 1. BUT I THINK THERE ARE SOME EARLY, ADMITTEDLY TENTATIVE, INDICATIONS THAT PERVASIVE DEBT ISSUES MAY BE HEADING IN A MORE POSITIVE DIRECTION. 2. FEDERAL BUDGET DEFICITS CANNOT CONT I NUE AT THESE HIGH LEVELS. A. EVENTS IN EASTERN EUROPE 1. PEACE DIVIDEND. 2. BUT AT LEAST THE POSSIBILITY OF MOVING IN THE RIGHT DIRECTION. 3. CORPORATE DEBT. A. MARKET REFUSAL OF SEVERAL H.L.T.S. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 12 B. INDIGESTION IN THE JUNK BOND MARKET 1) SEVERAL COMPANIES IN PAST SEVERAL WEEKS THAT HAVE DECIDED AGAINST u -t--N+f..a.LSITY OF FOCUS BY IN BANK LOAN PORTFO r-=- 1) S R INT THERAPEUTIC RESULT. D. JUST POSSIBLE STARTING A RETURN TO BASIC RENEWED APPRECIATION FOR EQUITY 1) RATHER THAN OVERDEPENDENCE ON nEBT. ) ;z.. ,~ U- 1.,1 R,.,~ 'l--~ "F LA..-.io( "" .--A. ,..:,-:.1 ~ . 4. CONSUMER DEBT. A. SOME MITIGATING CIRCUMSTANCES THAT PUT HIGH DEBT LEVELS IN BETTER PERSPECTIVE. LOWER HOME STARTS/SALES AND LOWER 1) PURCHASES FOR CONSUMER DURABLES 2) RESULT IN MODERATING CONSUMER DEBT ~L~~ ~ ~c.J"-.!2.JJIJ,r-l , ... (,. f&:trJ~,'v.t_J ~'~.S X. BUT THERE ARE OTHER IMPORTANT ISSUES WHICH WILL ALSO NEED TO BE FACED. A. WE WILL NEED TO CONTINUE TO MAKE PROGRESS ON THE TRADE DEFICIT. 1. TO DO THIS, IT WILL BE IMPORTANT THAT OUR COMPETITIVE TRADE POSITION IMPROVES. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 13 2. THE CONTINUED DEPENDENCY ON FOREIGN MARKETS TO FINANCE OUR DEFICITS HAS RISKS. B. WE MUST ALSO IMPROVE ON OUR LOW RATE OF PERSONAL SAVINGS 1. TO ACHIEVE A BETTER BALANCE BETWEEN CONSUMPTION AND INVESTMENT. r. )NI!JAJIVES NOW JAKJNB Pl AC-6. C. WE WILL NEED TO CONSIDER THE IMPACT OF THE TAX LAWS ON INVESTMENT INCENTIVES. 1. THE U.S. HAS A HIGHER COST OF CAPITAL INCLUDING TAXES THAN MANY OTHER INDUSTRIALIZED ECONOMIES. D. HAVE SEEN DEREGULATION IN THE FINANCIAL MARKETS BUT INCREASING SOCIAL REGULATIONS. 1. POLLUTION REDUCTION, WORKING CONDITIONS (OSHA), PRODUCT SAFE TY, EQUAL OPPORTUNITY REGULATIONS -- ALL HIGHLY MERITORIOUS. 2. BUT BENEFITS NOT ALWAYS REALIZED, YET COSTS HIGH AND UN INTENDED NEGATIVE SI DE EFFECTS ARE THERE. E. THESE ARE JUST SOME OF THE MAJOR ISSUES WILL BE FACING IN THE 90S. 1 XI. BUT LET ME CONCLUDE MY PART OF OUR COMMENTS WITH ONE ITEM THAT I THINK STANDS OUT CLEARLY FROM THE OTHERS. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 14 A. THE NEED TO MAKE CONTINUED PROGRESS ON INFLATION PRICED STABILITY. 1. WE HAVE MADE PROGRESS. 2. BUT 5% OR EVEN 4/4-1/2 HARDLY AN ACCEPTABLE DEFINITION OF PRICED STABILITY ON A CONTINUING BASIS. 3. WE HAVE GOT MORE WORK TO DO. 4. ARGUABLY, PERHAPS THE MAJOR CHALLENGE OF THIS NEW DECADE. 5. ONE WE WILL FACE RIGHT OFF IN THE COMING MONTHS. ILL HAVE SOME DIFFICUL s. / OUR CHOICLJ,~ ~·--__ _,,,,_ OUR RESO C. GIVEN THE IMBALANCES IN THE SYSTEM THAT I' VE OUTLINED -- OUR HEAVY DEBT ORIENTATION. 1. THERE WILL BE AN UNDERSTANDABLE FEAR/AVERSION OF EVEN RISKING A RECESSION. 2. SOME WILL SAY THE CONSEQUENCES TOO DESTABILIZING TO EVEN CONTEMPLATE. 3. THEREFORE, A RESTRICTIVE MONETARY POLICY TO DEAL WI TH I NF LAT I ONARY PRESSURES WI LL BE RESISTED. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 7, 1990 - PAGE 15 D. WE'LL COME UNDER PRESSURE TO EASE. 1. THEY WILL COME UNDER BY-LINE "NECESSITY TO MAINTAIN ECONOMIC GROWTH" 2. BUT REALLY AN EFFORT TO AVOID RECESS I ON AT ALL COSTS. A. WILL INTENSIFY AS GROWTH RATE "SKIRTS" OUR LONGER RUN GROWTH POTENTIAL. 1) THIS LOW GROWTH RATE IS THE OUTLOOK FOR EARLY PART OF THIS YEAR. 3. THOUGH IT WON T BE STATED, THERE WI LL BE I PRESSURE TO REFLATE A. SO EASY TO MELT THE PROBLEMS AWAY. B. WE'VE BEEN THERE -- IT DOESN'T WORK. C. GIVEN WRENCHING READJUSTMENT AGRICULTURE. 4. PRICE STABILITY IS A NECESSARY INGREDIENT FOR SUSTAINED ECONOMIC GROWTH. A. WE CAN'T HAVE ONE WITHOUT THE OTHER. E. AS WE ENTER THE 1990S, THE U.S. HAS A VERY DIFFERENT ROLE THAN WAS THE CASE AS WE ENTERED THE 80 S. 1 1. WE FACE SOME DIFFICULT CHALLENGES. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SILAS KEEHN DWIGHT ROTARY CLUB - FARMERS' DAY MARCH 1990 - PAGE 16 71 2. BUT WE HAVE A HISTORY OF RESOLVING THE TOUGH ISSUES AND I HAVE EVERY EXPECTATION THAT WE WILL MANAGE OUR WAY THROUGH THESE IMBALANCES THAT CONFRONT US. 3. BUT AT BEST IT WILL BE AN INTERESTING I DE~DE. -'-k'~~ 4. HOPe~ WILL HAVE AN OPPORTUNITY TO COME BACK AND REVIEW IT WITH YOU IN 1999. XI I. WITH THAT QUICK LOOK AT SOME OF THE BROADER ISSUES1 LET ME TURN TO PETER HEFFERNAN FOR HIS VIEWS ON SOME OF THE MORE SIGNIFICANT ISSUES RE LAT I NG TO THE AGRICULTURAL SECTOR. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Silas Keehn (1990, March 6). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19900307_silas_keehn

@misc{wtfs_regional_speeche_19900307_silas_keehn,
  author = {Silas Keehn},
  title = {Regional President Speech},
  year = {1990},
  month = {Mar},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19900307_silas_keehn},
  note = {Retrieved via When the Fed Speaks corpus}
}