Fed Governor: Family Finances Key to Economic Recovery

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WSJ Article Link
By JAMILA TRINDLE
VIRGINIA BEACH, Va.—Financially sound individuals and families are important to the overall stability and growth of the U.S. economy, Federal Reserve Governor Elizabeth Duke said Saturday.

"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," Ms. Duke said in remarks prepared for a speech on financial planning in Virginia Beach, Va.

Ms. Duke encouraged consumers to create a financial plan, save money through automatic withdrawals for retirement, create an emergency fund, and manage debt.

Ms. Duke said that the financial health of U.S. households is a key factor in the sluggish recovery because Americans are still paying off debt that they acquired during the boom years.

Financially informed consumers contribute to community economic development which in turn helps the overall marketplace, she said.

"Financially secure households are the backbone of a strong domestic economy," Ms. Duke said.

Imagine that...