Fed: Nothing To See Here - Move Along
Ben Bernanke says the Fed believes the housing slump and collapse in the sub prime mortgage market have been contained and are not affecting the overall economy. A friend of mine in homebuilding says just the opposite, and that the industry is looking at another 12-18 months before digging out of its hole.
Bernanke also said that even though gas has shot back past $3 a gallon, the Fed expects inflation to ease this summer. He is predicting moderate growth in the economy the rest of 2007.
Today’s question: Is he correct, or is he on crack?