Ryan Avent has a recap of the past 48 hours for the Federal Reserve, concluding: “Neither of the above quotes indicate that the Fed is anywhere near a move to significant tightening. But with growth falling short of the Fed’s forecast, inflation expectations still declining, wages and consumer spending stagnant, housing markets weakening, manufacturing growth petering out, and stimulus ending, “not tightening” just might not cut it.”
Sigh. The most important thing for the future of the country over the next decade is probably going to be what the Federal Reserve and Treasury does in the next six months. As MBA points out delinquencies are being driven now by joblessness and unemployment, and getting people jobs puts a tourniquet on the bleeding foreclosure crisis. I don’t write about it enough here mostly because there’s an all-star team of writers and economists hitting this very hard, but I do see it as central. I’ll try to link and write more about it shortly, and I have some more formal stuff coming soon I’ll share with you.