Fed: Nothing To See Here - Move Along

by Steve

MSNBC Image

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?