FRBSF University Symposium Board of Governors Ben S. Bernanke, Chairman Darrin Howard Quang Le Layla Mansfield Nabiha Parvez Michelle Staples

Labor Unemployment 4.4% Average Hourly Earnings Increased 3.9% Non-farm Payrolls 92,000 Jobs Source: Bureau of Labor Statistics

Gross Domestic Product 3rd Quarter Real GDP Increased 2.2% Real Personal Consumption Expenditures Increased 2.9% Source: Bureau of Labor Statistics

Balance of Payments Account Deficit 6.6% of GDP Source: Bureau of Labor Statistics

Energy

Inflation Durable Goods New orders Decreased 8.3% Inventories Increased 0.7% CPI Decreased 0.5%

Housing New Housing Starts Down 15% to the lowest level in more than six years Privately owned starts 14.6% (±7.6%) below the revised September estimate. 27.4% (±5.3%) below the October 2005 rate. Single-family starts 15.9% (±7.4%) below the September figure Median price for new homes 10% decrease over the past 12 months Foreclosures 42% increase from last year. FRBSF University Symposium

Board of Governors Ben S. Bernanke, Chairman Darrin Howard Quang Le Layla Mansfield Nabiha Parvez Michelle Staples