Squawk on the Street

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Squawk on the Street

Chicago Fed President Moskow: Economy Is Solid

In an exclusive interview on cnbc.com – Michael Moskow – president of the Chicago Federal Reserve sat down with CNBC’s Steve Liesman about the U.S. economy. Liesman spoke with Erin Burnett on “Squawk on the Street” about the interview. Despite the down week of reports on the U.S. economy – Moskow is still concerned about inflation and fairly upbeat about growth going forward.

Here’s Moskow’s take on things: “I think we’d expect some monthly ups and downs in the data, but when you look at the broad trend of the economy, there’s a lot of strength there. Employment looks strong. The unemployment rate is low. Productivity is high. Incomes are high … So overall I still think the economy is solid.”

Liesman said Moskow’s prediction for ’07 was an unemployment rate below 5% – it was 4.4% in October, and the prediction for November numbers out this Friday is 4.5%. He sees inflation headed in the right direction – but says the Fed must remain vigilant.

As for the fluctuating U.S. dollar – Moskow handled that question with the finesse of a White House press secretary. He said price stability – getting inflation under control – is the key to the value of the dollar.