At Wednesday’s Zoom-only meeting, PNC Bank Asset Manager Amanda Agati reassured Rotarians that the U.S. economy’s underlying strength is underappreciated and that a recession is not imminent. PNC Financial Services Group, Inc. is the ninth largest bank in the U.S., with $616 billion in assets and 2,300 branches. It is a major U.S. financial-services company headquartered in Pittsburgh, Pennsylvania. Its three major areas are Retail Banking, Corporate & Institutional Banking, and Asset Management.
In a conversation moderated by Ivar’s President and civic leader, Bob Donegan, she provided broad insights about the economy nationally. As Executive Vice President and Chief Investment Officer (CIO), PNC Asset Management Group, she leads an asset management investment team of 185 who pour over peer research and financial media such as Bloomberg and Morning Star, Financial Times, and the Economist for investment strategies.
“We look at all sides to help frame out financial conditions into a mosaic of where we are in the cycle and what is the timing and what is the best future entry point,” she said. “The U.S. economy there are market participants that are not appreciating the underlying strength of the economy as a natural outcome of GDP growth and certainly not at the edge of a recessionary cliff.”
She explained that it is not unusual for the Federal Reserve to hold off on action before an election. Citing concerns that its approach to inflation is a blunt instrument rather than a scalpel, she urged a slow, steady approach.
She said the Fed should keep policy on hold and cautioned against focusing too heavily on its actions or signals about future policy. Although policy is no longer in the driver’s seat, she noted, it remains the dominant force shaping markets.
She relies on “hard data,” which points to economic strength, while softer indicators reflect widespread pessimism. Small business owners face pressure that is expected to persist for the near future. Spending by middle- and higher-income consumers supports economic growth as investment portfolios rise, but lower-income consumers, including first-time homebuyers, do not share those benefits and remain under considerable pressure.
Savings rates are up suggesting ‘strength of the consumer ‘with back to school and holiday shopping expected to be up as an extension of the economy.
She said the middle class is shrinking as the gap between the haves and have-nots widens. Artificial intelligence is driving the next wave of innovation and delivering strong results, while financial and capital markets also remain strong. She advised avoiding utilities, healthcare, and real estate and watching the next generation’s priorities as the way we work evolves.
President John then introduced SRSF recipient and passionate care giver, Deacon Frank – a street chaplain of Operation Night Watch who described how his organization of 1,200 volunteers goes where the people in need are.
“We provide street chaplaincy, food, shelter and senior housing together with case management/free medical care,” he said. “We have more than 11,000 encounters on the street every year to reduce the impact of poverty as folks on the street are grateful for the support.”
He said 258 unsheltered people had died on the streets of Seattle with little recognition of their existence much less their passing. Operation Nightwatch is non-judgmental working with homeless folks to “reignite their lives rather than light another candle.”
258 people what have died on the street. Light to reignite than to light another candle. There has been a 21% increase in people living unsheltered. They feel ignored and the Casim keeps growing.
“We can reverse this trend by acknowledging the dignity of the people we are meeting,” he concluded, then thanked SRSF for making a grant to fund resources for the common good.
-Have a spooky good weekend, Pete!
