1. Monetary Policy and What’s to Come Ryan Herzog, Ph.D. Assistant Professor of Economics Gonzaga University 9/28/2011 Prepared for SMLA

2. The National Economy

3. National Output

4. Housing Starts

5. National Unemployment

6. Unemployment

7. Manufacturing and the Labor Force

8. Structural Concerns

11. State Unemployment

12. State Unemployment

13. Spokane Unemployment

14. Washington and Spokane Income

15. Foreclosure Rates

16. Washington State Housing Foreclosure Rates (First Lien) March 2011 December 2010 September 2010 June 2010 March 2010 Spokane 3.2 3.2 3.1 2.9 2.4 Seattle/Tacoma 4.1 4.0 3.7 3.1 2.8 Portland/Vancouver 4.1 4.7 3.7 3.5 3.4 Yakima 4.3 4.3 4.2 3.8 3.5 Olympia 3.6 3.5 3.3 2.8 2.4 Wenatchee 2.6 2.7 2.3 2.0 1.8 Tri Cities 2.1 2.2 2.2 2.0 1.9 Coeur d'Alene 3.8 4.0 3.8 3.8 3.5 Lewiston, ID 2.6 2.9 2.5 2.1 2.2 90+ Days - Delinquency Rates (First Lien) March 2011 December 2010 September 2010 June 2010 March 2010 Spokane 3.2 3.1 3.2 3.5 3.7 Seattle/Tacoma 4.3 4.3 4.3 4.8 5.0 Portland/Vancouver 3.2 3.4 3.2 3.6 3.8 Yakima 3.2 3.3 3.8 3.9 4.0 Olympia 3.5 3.6 3.7 4.0 4.3 Wenatchee 2.6 2.6 2.8 2.9 3.1 Tri Cities 2.0 2.1 2.3 2.7 3.0 Coeur d'Alene 2.7 2.5 2.6 3.0 3.6 Lewiston, ID 2.1 2.0 2.5 2.6 3.1 *Source www.foreclosure-response.org (Center for Housing Policy)

17. Washington Housing

19. Investment

20. Retail Sales

21. Inflation Rates

23. Short and Long-term Interest Rates

25. Federal Reserve Balance Sheet

26. Interest Rate Targeting

29. Inflationary Concerns