Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related images(s).
Inspired by Greenspanspeak, and transitioning to Bernankespeak, the Wall Street Journal continues a well-executed tradition of graphically interpreting what the Fed really means.
While there are some lingering concerns about inflation, the reduction in energy prices seemed to appease them but left open the option for further increases. For the second straight time, there was one board member casting a descenting vote for another 25 basis point increase, something that didn’t happen under Greenspan’s watch.
From their observations, it appears that they are acknowledging a weakening housing market by reducing the word “gradually” from the housing comment made in August. (see bold).
The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market.
Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
With the state of the nation’s housing cooling rapidly, I am thinking that the FOMC may actually drop rates by their December meeting. They appear to have overshot their target by underestimating the effects their 17 rate increases on the housing market’s impact on the economy.
_August Statement Analysis_
Cooling Economy Makes FOMC Stop [Matrix]
_June Statement Analysis_
FOMC Makes It 17 at 5.25% And Seems to Get It About Housing [Matrix]