Of course, while it is reassuring that most of the city has bounced back strongly from this historic natural disaster, it is important to remember that the hardest hit communities, and the residents and businesses there, who lost so much, are still struggling to recover. Many of those communities are right here in Queens: the whole Rockaway peninsula – from Breezy Point to Arverne – was completely flooded, as were neighborhoods like Howard Beach, Springfield Gardens, Lindenwood, and even parts of Flushing, Long Island City, Astoria and Maspeth. Still, Queens as a whole showed strong resilience – employment bounced back from Sandy fairly quickly, and as of early 2013 it had already surpassed its pre-Sandy level. While many residents here commute to work in other boroughs, primarily Manhattan, Queens has a formidable industrial base of its own. Jobs are prevalent in industries ranging from medical care to construction, not to mention printing and a number of other manufacturing industries that benefit from being in a large population center. But Queens’ most concentrated industry is transportation – specifically air transportation which employs about 27,000 workers, about five percent of Queens’ jobs. Education is another key industry in Queens and the city as a whole. And it is not just a job creator. The investment in human capital that education entails makes it a socially desirable activity. There is considerable value from a college education both to the person that has been educated and to society as a whole.
As is always the case, there is substantial uncertainty surrounding this forecast. Moreover, there is always the possibility of some unforeseen shock. Thus, we will continue to monitor U.S. and global economic conditions very carefully and will adjust our views on the likely path for growth, inflation and the unemployment rate accordingly. Thank you for your kind attention and I will now be happy to take some questions. 1  4  Based on the CoreLogic home price index including distressed sales. BIS central bankers’ speeches