2008-04-09 ABC News Washington Post US Weekly Personal Finance Index

ABC personal finance subcomponent

Down but not out.

Weakness, but probably no recession as per Bernanke’s latest address before Congress.

Inflation ripping, as Fed staff raises it’s near term forecast.

The Fed ‘fights inflation’ with ‘slack’.

The Fed waiting for slack to be reduced before turning its attention to inflation is illogical at best.

Without the much anticipated further decline in home prices the Fed will find itself that much further ‘behind the inflation curve’.

The Fed needs the housing decline for its models to forecast inflation returning to comfort zones.

4 Responses

  1. How much of a housing decline do you think the fed is looking for? Case-Schiller clocked-in at an unprecedented decline of 9% yoy last month.

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