Pittsburghers have to avoid letting bad news in the national headlines affect their local spending, says the head of one of the nation's leading corporate tax firms.

"If people stopped reading the national press and just essentially said, 'Look, this is Pittsburgh. We don't have these problems. Let's spend our money in this economy. Let's keep driving the employment up that we've been doing,' I think things will be OK," said Chet Wood, chairman and chief executive office of Deloitte Tax LLP.

Mr. Wood, who is based in New York, recently stopped by his company's Pittsburgh office while he was in town mentoring students at the University of Pittsburgh's Katz School of Business.

He said the subprime problem was concentrated in about five key areas of the country, but that the news was spreading nationwide with potential to dampen the confidence of consumers and businesses regardless of whether they are feeling the subprime impact locally.

"It's only human to be worried and concerned," Mr. Wood said. "You've got families to support, kids to educate and all the stuff you want to do. But pay more attention to what's happening locally.

"You have good things going on here. You've weathered a lot of storms, like the manufacturing crisis. ... Things are doing pretty darn good here."

As for his thoughts on whether the country is heading for another recession, Mr. Wood said the answer was more complicated this time around because of the growing influence of global trade.

"It's absolutely clear that we are going to have moderating growth," he said. "Whether that transcends into a full-blown recession or sluggishness, I'm not sure. Other economies play a role in our definition of when we are in a recession vs. a slowdown.

"We are a major exporter. If you're an exporter when the dollar is weak, times are good. You have to look at it from a more macro level now. Yes, the U.S. financial services industry is suffering. But if you are an exporter of tennis balls or lawn mowers ... or take John Deere or Caterpillar. They're in record years."

Deloitte Tax is the U.S. member firm of the multinational corporation Deloitte Touche Tohmatsu, which provides professional services and advice to clients in nearly 150 countries.

A native of Reno, Nev., Mr. Wood is a certified public accountant and serves as managing partner of the Deloitte U.S. firms' mergers and acquisitions practice and the global service line leader of Deloitte Touche Tohmatsu's mergers and acquisitions practice.

Mr. Wood said the federal government was hoping to jump-start the economy with an economic stimulus package aimed at boosting consumer spending, but that he believes it is critical for families to save at least a portion of the rebate.

Families also could do themselves a favor by taking a closer look their retirement and college savings accounts -- such as 401(k)s, IRAs and 529 plans -- to make sure they're diversified and have a long-term strategy.

"Should we be concerned that the general market is going to take a hit and [what could happen] to 401(k)s?" Mr. Wood said.

"Remember, this is the strongest economy in the world. It will always be the strongest economy in the world. Be smart and thoughtful about the investment allocation that you have, but I certainly wouldn't be freaking out about it."