Wells Fargo’s Sohn is “optimistic about the economy."
After a long stretch where consumers supported the economy, “business is going to kick in, and as we turn on this second engine, things are going to turn up,” said Sung Won Sohn, executive vice president at Wells Fargo. The former presidential advisor, called one of the most accurate forecasters by Bloomberg News, predicts 3.8 percent growth this year and 3.5 percent in 2005. Speaking at DVT’s Global Business Conference and User Group Meeting here in Las Vegas, he said he is “optimistic about the economy,” and that job growth through the rest of the year could mean an increase in jobs during the term of President Bush.
Jobs will play a key role in the continued growth. “You tell me what’s happening with jobs and I’ll tell you what's happening in consumer confidence,” Sohn said.
Sohn believes that the decline of the U.S. dollar against the euro has been a positive development, though “devaluation has not helped as much as expected.” That’s partly because Asian countries, particularly China, have tied their currencies to the dollar and won’t let the dollar decline against their currencies. “I hope to see depreciation of U.S. currency versus Asian currencies,” he said.
China will also have an impact on oil prices. “Oil prices won’t go down because of demand in China,” Sohn said. He notes that some Chinese businesses can’t get electrical service, so they run diesel generators, driving up demand for oil.
For more information, visit http://www.drsohn.com.