Fed Speak 06/05/07
More on lying whores and highly paid elitist government shills... more two faced Fed Speak from Benny & The Feds:
(Never forget that the FED's primary job is to MANAGE inflation expectations... and perception is reality.)
Realization: "the adjustment in the housing sector is still ongoing, and the slowdown in residential construction now appears likely to remain a drag on economic growth for somewhat longer than previously expected."
Contradiction & Denial: "Thus far, however, we have not seen major spillovers from housing onto other sectors of the economy."
(I thought you just said "the slowdown in construction is likely to remain a drag on economic growth"?)
More Lies & Partial Truths: "As expected, we have also seen a gradual ebbing of core inflation, although its level remains somewhat elevated. "
("advertised" core inflation has been in an uptrend for the last 4 years, running well over 5% on non durable goods according to the latest PCE deflator)
Shreads of truth: "the downturn in the housing market has been sharp.... the rate of increase in shelter costs seems likely to slow, although the timing remains uncertain.
Single-family housing starts have declined by a third since early 2006, sufficient to subtract about 1 percentage point from real GDP...
as reflected in the continued downward trend in permits to build single-family homes, residential construction will likely remain subdued for a time...
we are also likely to see further increases in delinquencies and foreclosures this year and next as many subprime adjustable-rate loans face interest-rate resets.
Tighter lending standards in the subprime mortgage market...will serve to restrain housing demand."
(Never forget that the FED's primary job is to MANAGE inflation expectations... and perception is reality.)
Realization: "the adjustment in the housing sector is still ongoing, and the slowdown in residential construction now appears likely to remain a drag on economic growth for somewhat longer than previously expected."
Contradiction & Denial: "Thus far, however, we have not seen major spillovers from housing onto other sectors of the economy."
(I thought you just said "the slowdown in construction is likely to remain a drag on economic growth"?)
More Lies & Partial Truths: "As expected, we have also seen a gradual ebbing of core inflation, although its level remains somewhat elevated. "
("advertised" core inflation has been in an uptrend for the last 4 years, running well over 5% on non durable goods according to the latest PCE deflator)
Shreads of truth: "the downturn in the housing market has been sharp.... the rate of increase in shelter costs seems likely to slow, although the timing remains uncertain.
Single-family housing starts have declined by a third since early 2006, sufficient to subtract about 1 percentage point from real GDP...
as reflected in the continued downward trend in permits to build single-family homes, residential construction will likely remain subdued for a time...
we are also likely to see further increases in delinquencies and foreclosures this year and next as many subprime adjustable-rate loans face interest-rate resets.
Tighter lending standards in the subprime mortgage market...will serve to restrain housing demand."
Comments