As the economy strengthens, the Fed must begin to end its exceptionally expansionary monetary policy of the last half decade. It will begin by halting its purchases of $85 billion/month in Treasuries and mortgage-backed-securities. Second, it will stop reinvesting interest and principal on its holdings. Third, it will start raising overnight interest rates and lastly it will slowly liquidate its vast holdings of long-term debt. This process will take years.
Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC
elliot@graphsandlaughs.net
Cell: 202.306.2731
www.econ70.com
economy
Housing Recovery: The Pieces Are There, But the Certainty Isn’t
Pieces are in place for housing to continue on its road to recovery but there remain plenty of uncertainties that can derail the market, NAR Chief Economist Lawrence Yun said at a conference earlier this week. Read more…
Rally Critical for Commercial Too
In this month’s Commercial Podcast, I’m happy to share some good news about the commercial real estate sector from our just-released quarterly outlook. Good news is something we can use a lot more of. Also hear why the upcoming REALTOR® Rally in DC on May 17 is an important event for commercial practitioners—and all REALTORS®—to take part in. The Rally isn’t just about housing; we’re also there to remind Congress about how vital commercial real estate is to the economy. I hope to see everyone there.
Good Economic Signs for the New Year
Lately, most of the dire economic news has been coming out of Europe. Some U.S.-based analysts are suggesting that problems in Europe are contagious and will doom our economy to another recession. However, NAR Chief Economist Lawrence Yun explains why an economic recession in the United States in the upcoming year looks less and less likely.
