Federal Reserve Bank of New York Recommendation on the FFR November 2006

National RGDP Growth Rate National Growth is Declining in this Quarter. RGDP increased at an annual rate of 1.6% in the 3 rd Quarter of It had increased by 2.6% in the 2 nd Quarter.

Growth Rates in RGDP By state Real Gross State Product in New York and New Jersey grew at 3.2 and 2.8% annual rates, respectively, during the 2 nd quarter of 2006

Unemployment-Region Specific In New York the unemployment rate has fallen to 4.0%, its lowest rate in the last few months (July, August and September) The rate there is lower then it is nationally. In New Jersey the unemployment rate hit 4.4%. It was this low a year ago in It is right in line with the national unemployment rate. Unemployment-Region Specific

Unemployment-National Nationally the unemployment rate has fallen over the month of October 2006 to 4.4%. The rate of unemployment was the lowest that it has been in the recent months (July, August and September 2006). Declining productivity raises questions about inflationary pressures at the given unemployment rate.

National and Region Specific CPI In the 3 rd Quarter the CPI dropped dramatically for the region and the United States as a whole.

NE Region CPI The NE region is still experiencing higher prices then the rest of the nation

Nationally: Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,486,000 units. A 14.6 % decrease since September and is 27.4 % below the October 2005 rate of 2,046,000. Housing Starts