The Unemployment Conundrum
The Fed has telegraphed that it is prepared to act to stimulate the economy. And yes, many members of the Federal Open Market Committee (FOMC) are disappointed in economic growth, and more have suggested further action might be perhaps more likely now than it was just a month ago. Let's look at what John C. Williams of the San Francisco Fed had to say recently about the economy and Fed action. (Notie that he is currently a voting member of the FOMC.)
While Williams' general tone focuses on the very sluggish nature of the economy, he did highlight three positive segments. First, autos sales are up 14% for the first six months of this year from the same period a year ago and have increased 50% since the recession lows. Second, business equipment and software are up 8% during the past year (after adjusting for inflation). Third, housing, though "deeply depressed," is improving and seems to be "turning a corner." Jim Cramer highlighted these areas of the economy in his recent column....486 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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