Oct. 22 (Bloomberg) -- Federal Reserve Governor Elizabeth Duke said the financial stability of consumers and their families is key to the U.S. economy’s strength.
“The financial health of each household contributes to the financial health of the country as a whole,” Duke said today in remarks prepared for a speech in Virginia Beach, Virginia. “Thus, the Federal Reserve has an inherent interest in the financial stability and strength of individual households, whose spending, saving and investing significantly impact economic growth.”
Income and asset values that are improving with the U.S. economy “should be felt more and more by U.S. households,” which have smaller debt balances and are receiving lower interest rates, Duke said. The share of income devoted to paying down debt is at its lowest level since 1994, she noted.
Duke, speaking at Virginia Beach Financial Planning Day, didn’t discuss forecasts for the U.S. economy or her outlook for monetary policy in her prepared text.
--Editors: Kevin Costelloe, Scott Lanman
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