No Inflation

By Econ70 | 04/15/2011

Bernanke and a majority of Fed officials predict that the surge in oil prices will lead only to a modest and short-lived increase in consumer prices as firms will have a very tough time passing cost increases on to consumers as slack in the labor market keeps wage increases to a minimum. Thus, inflation is…

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The Good, The Bad, The Ugly

By Econ70 | 02/17/2011

The Good: Fed lifted its GDP forecast for ’11 to a 3.4% to 3.9% band from 3.0%-3.4% based on minutes from Jan meeting. The Bad: Ongoing frustration with slow progress in the labor market compelled the Fed to say that accommodative monetary policy is crucial. The Ugly: mortgage apps for home purchases fell 5.9% the…

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HOUSEHOLD EMPLOYMENT

By Econ70 | 02/05/2011

If you were to pick just 1 item out of yesterday’s jobs report that accurately depicts the labor market, given the inconsistent messages, it would be the Household employment # on a payroll and population adjusted basis. It came in at +153k in Jan; in line with the avg of the past 12 months. For…

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