Archive for May, 2008
Fed’s Rosengren Says Housing Still Adding "Significant Uncertainty" to Economy
The sharpest drop in housing prices in 50 years
poses a “significant” risk to the U.S. economy, but the Fed’s rate cuts
should be felt in the second half of the year, according to one Fed
official on Friday.
Boston Fed President Eric Rosengren said the U.S.
housing market is a small part of GDP but the slump, the effects of which
are widespread, may last longer than anticipated.
Rosengren said it is important for servicers to help economic growth
by making loan modifications where appropriate…
U.S. Personal Spending Report Allows Fed to Pause Rate Cuts, Economists Say
Inflation remains contained and personal spending
continued improving according to the latest report from the U.S. Commerce
Department on Friday. Economists said the Fed will be pleased to see that
consumers are holding in there despite weakness in the broader economy,
though in real terms the 0.2% gain in personal spending was flat.
Fixed income strategist T.J. Marta from RBC Capital Markets said the
big picture is that there is “no resolution to the conflicting problems
confronting a dual-mandated Fed…