Foreclosures Are Up, but Bargains Hard to Find
The Federal Reserve held its benchmark interest rate steady at 5.25 percent for the ninth straight time on Tuesday, emphasizing that controlling inflation was its greatest concern, but acknowledging the risks of an unstable housing market.
It summed up its views on the issue succinctly in this policy statement:"Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing," it said."Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy." After yesterday’s pronouncement, 13 of the 21 economists polled by Reuters believe that the Fed’s next move will be a rate cut because the Fed has acknowledged that there are some downside economic risks."This admission of risks to growth is a full baby step toward an equal risk position," says Brian Fabbri, managing director of economic research at BNP Paribas in New York.Source: Reuters News, mark Felsenthal (08/07/2007)