Home prices threaten Fed balancing act
Construction frenzy magnifies home-price risk
By Lou Barnes, Thursday, June 29, 2006.The latest mortgage run toward 7 percent has stalled ("retreat" is too strong) because of yesterday's shift in one Federal Reserve phrase: on May 10 economic growth was "likely to moderate"; but as of yesterday, "growth is moderating."
If so, then the inflation threat will also moderate, though with a lag of several uneasy months.
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Copyright 2006 Lou Barnes
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