Despite some concerns in the coming year, 2007 should bring solid economic growth, an economist said last night at the annual Business Record Economic Forecast.  

Carl Tannenbaum, senior vice president of treasury research for LaSalle Bank N.A., told a crowd of more than 300 at the Hotel Fort Des Moines that despite fears of a housing market collapse, rising energy prices, retiring Baby Boomers and China’s economic rise, the economy is not only stronger than it was a year ago, but it also continues to move in a positive direction.

“People without jobs typically don’t spend a lot of money,” he said. “And 1.8 million new jobs were created last year. Hourly wages are 4.2 percent higher and the Dow Jones continues to hit record highs. Most households are better off today than when we spoke one year ago.”

Tannenbaum said debates on immigration reform, a higher minimum wage, whether to extend tax cuts and how to give public companies “relief from the Sarbanes-Oxley Act” will help shape the new economy. He also predicted that Federal Reserve policy makers will most likely leave interest rates as they are.

For complete coverage of the event, as well as opinions from other economic experts, see the Jan. 29 issue of the Des Moines Business Record.

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