Tag Archives: Economy

Was the slowdown in GDP growth an early indicator of the negative state of the economy and slowly growing housing markets?

The Federal Reserve has consistently been obscure in the details surrounding its monetary policy decisions, and the Federal Open Market Committee was abundantly clear on just how unsure they are about the future in regards to their recent decision to leave rates at their current level.

In her testimony before the House Financial Services Committee on Wednesday when discussing monetary policy, Yellen pointed out factors that have weighed on aggregate demand, such as limited access to credit for some borrowers, weak growth abroad, and the dollar’s significant appreciation.

President Barack Obama had much to reflect on prior to unveiling his final budget plan for Fiscal Year 2017, but one theme remained consistent in every part of his speech to Congress and the U.S. today—economic strength is the key to America's future.

Given some of the recent major economic news concerning the Fed, it is probably not hard to guess at least some of what Yellen will be talking about this week.

In the midst of what some are calling a global crisis—due to weaknesses in the energy sector and stock market combined with the effects of an overly strong U.S. dollar—home prices continue to move upward. Despite this however the housing sector is just not large enough to carry the weight of the world.

As the cost of housing continues to rapidly rise, consumers can hardly keep up, especially as their income remains stagnant. However, despite the lowering consumer financial sentiment, economic conditions lift the housing market upward.

Homeowners across the nation are undoubtedly recovering from the housing crisis, but wealth among these homeowners is not contributing to the economy as whole like it did prior to the crisis.

While consumers anticipate a better labor market to come, they were mixed about inflation, depending on how deeply into the crystal ball they look, the latest Survey of Consumer Expectations from the Federal Reserve Bank of New York showed.

Although the housing market was one of the main drivers of the crisis on the U.S. economy, the housing sector has made significant recovery and cities are beginning to find their footing in the market again.