Federal Reserve Bank of Atlanta shares mid-year economic outlook at Savannah State

SAVANNAH, Ga. (WTOC) - Coastal Georgia business leaders, city leaders, and students gathered at Savannah State University for the second annual mid-year economic outlook, featuring insights from the Federal Reserve Bank of Atlanta.

Executive Vice President and Chief Economic Adviser for the Federal Reserve Bank of Atlanta Dr. David E. Altig led the discussion on Tuesday.

Topics included the state of the labor market, the role of artificial intelligence, and what it would take to bring inflation back to 2%.

He said the last three months have shown a renewed momentum in the labor market.

Altig said the presentation inside the Mary Clay Torian Auditorium was similar in scope to last year’s event, given the continuing development of the same economic issues.

“Labor markets seem to be slowing, but they’re not exactly out of sync with anything,” Altig said. “Inflation is too high.”

He pointed to low unemployment and growth in logistics, education, and healthcare as factors driving the economic picture in Savannah and other growing markets.

“Unemployment rate’s really low and the whole logistics kind of angle on things, along with education and healthcare, which Savannah also has a big presence in, is really the things that are driving the economic picture forward in almost every place that’s growing, and this is one of them,” Altig said.

Nationally, he said consumer spending held steady in the first quarter compared with recent years while disposable personal income declined. Saving rates fell below pre-pandemic levels and continued to decline. The U.S. also experienced a productivity boom, though Altig said the data did not yet show artificial intelligence as the primary driver, noting it could be a contributing factor.

Dr. Michael Fronmueller, dean of the Savannah State University College of Business Administration, said the event reflected the school’s broader mission.

“Our mission for Savannah State, the business school, is to create opportunities for the community,” Fronmueller said. “To learn, for us to help with workforce development. We don’t just teach, we actively participate.”