1. ECONOMIC OUTLOOK AND MONETARY POLICY RECOMMENDATIONS November 2, 2012 New York, NY

2. Discussions State of the Economy Internal and External disruptions Housing Market Labor Market

3. REAL GDP Rate

5. Household Consumption Increasing

6. Even though Disposable Income is Decreasing

7. Consumer Sentiment is Optimistic Despite the “Fiscal Cliff”

8. Retail Sales

9. Fixed Investment & Government Spending Lagging

12. The Housing Sector is Recovering

14. New Residential Construction Rate

15. Construction Spending Rate

16. Mortgage Rates at a low…

17. New Home Sale Rate

18. Home Price Index Rate

19. Financial Markets Recovering Some Ground…

21. Unemployment Rate

22. Civilian Unemployment

24. Nonfarm Payroll Employment Rate

25. Industrial Production

26. Capacity Utilization

27. Price Stability Rate

28. Household Debt Service and Financial Obligation Ratios

29. Household Consumption Rate

30. Nominal Interest Rates

31. TIPPS-10 YEAR

32. Exports in the decline

33. Oil Prices in the Decline= More Disposable income for Consumers

34. U.S Foreign Exchange Rates

35. Too much money laying around the Reserves

36. Commercial & Industrial Loans in the Decline

37. Unemployment is still too high

38. The Unemployed are becoming Unemployable..

40. The Euro zone Economy= Drag for the U.S Recovery?

41. Emerging Economies Cooling Down