There must have been close to a thousand people gathered to hear Esther George, President and CEO of the  Federal Reserve Bank of Kansas City, speak about the state of the economy last week. Thanks to Central Exchange, this annual event is one of the best opportunities to hear directly from one of the country’s most influential leaders.

While the economy is certainly important, the very beginning of President George’s talk intrigued me the most.

She began by talking about Paul Volker, Chairman of the Federal Reserve in the 1980s. She became President of the KC Federal Reserve when he was still Chair, and he mentored her. Chairman Volker passed away in December 2019, and President George spoke of her admiration for him.

As a student of leadership, I was eager to hear what President George admired in another leader. Here are a few things she said she admired about Paul Volker:

• Courage to endure short-term suffering in favor of long-term gain

• Willingness to share his advice and experience (He always took her calls)

• Able to speak his mind—and it was informed

• You knew where you stood, even when there were disagreements

• Intellectual honesty

• Interest in the American public

• Encouragement

She said, “Leadership, integrity, and service were at the core of Paul’s character, and they are what I aspire to each day.”

President George then reminded us of how the economy was good a year ago but began to sour as trade became questionable. Trade continues to be questionable, and that is weakening business and manufacturing spending. Consumer spending is up, however, and it is causing 2020 to start with some momentum.

“When consumers feel good, they spend. Consumer confidence is at post-recession levels, but when we look forward, consumers are concerned,” President George explained. When consumers see their future as bleak and fear losing their jobs, their spending slows.

I am not an expert but find it interesting to note that businesses don’t feel good enough to spend, but consumers do. Perhaps we consumers ought to note that and tone down the spending? Why are we doing the heavy lifting with this economy?

Here is how President George summarized the state of the economy:

1. The economy is in good shape.

2. Employment is at high levels.

3. Inflation is low and stable.

4. Business spending is soft.

5. Consumer spending is poised to carry the economy forward.

President George thinks keeping rates on hold is wise, as the outcome of last year’s rate cuts and other incoming data remains to be seen. In the meantime, she said, the Federal Reserve will be reevaluating its monetary policy strategies, tools, and communications to address future downturns.

Thank you, President George, for sharing your insights, for your influence on America’s economy, and for being a leader of strong character.

On a different note, there was a creative display of U.S. currency origami in the lobby. Check it out!