Governor Sarah Bloom Raskin seemed marginally upbeat on the economy, stating the economic news has been encouraging and suggesting that the recovery is improving. Nonetheless, she sees the recovery having a long way to go, especially for unemployment. She is concerned that the higher level of long-term unemployment is cutting into the economy's productive capacity.
"The share of unemployed workers who have been without a job for more than six months is still more than 40 percent nationwide, a level well above that seen in earlier recessions. Being unemployed for such a long time can have negative effects on workers' skills and their attachment to the labor force, thereby possibly reducing the productive capacity of our economy. “
Raskin sees monetary policy having brought interest rates down and boosted business investment. However, the noted that monetary policy alone will not be able to restore household wealth to pre-recession levels, specifically referring to housing wealth.