Economist tells Fairfield audience economy is broadly healthy but warns on jobs and housing

Dr. Sanjay Varski, who identified himself as a chief investment officer and Sacramento State professor, gave a wide-ranging economic outlook to the joint Fairfield City Council and Planning Commission. He said aggregate U.S. growth and corporate profits have been strong, inflation has eased, and private capital remains abundant — but he warned the recovery is uneven and risks remain for workers and local housing markets.

"It is a K-shaped economy," Dr. Varski said, arguing that the top third of households drive much of current spending while many families remain paycheck-to-paycheck. He cited recent quarterly national growth figures and a recent inflation reading he said was 2.4 percent; he also characterized first-time homebuyer activity as having fallen by more than half.

Varski identified three primary concerns for local communities: elevated unemployment in parts of California (he cited Fairfield at about 5.6 percent), persistent housing affordability problems as mortgage and long-term rates remain high, and rapid labor disruption from artificial intelligence that may eliminate some entry-level white-collar roles. He predicted additional Federal Reserve rate cuts in the near term and said those moves, along with fiscal stimulus, could support growth.

During audience questions, Varski recommended increased financial literacy and vocational training to narrow wealth and opportunity gaps, urged caution on over-reliance on any single trading relationship, and said that certain strategic industries (for example, chip manufacturing and pharmaceuticals) justify targeted industrial policy.

Varski's presentation was framed as economic analysis rather than city policy advice; no specific city actions were proposed during his remarks, though he later deferred a direct question about local tax policy to city leadership.