Jump to content
House Price Crash Forum
crash2006

Surprise Fall In Us Inflation Offers Hope

Recommended Posts

However, the president reiterated his opposition to a government bailout to solve the subprime mortgage crisis, arguing that excessive government intervention would do more harm than good.

huh shocked, iam shocked that they are saying inflation has drop, people i spoke too last night in the US local pump has put up petrol prices about an hour ago.

A surprise fall in inflation last month on Friday offered a glimmer of hope that price pressures could be softening in the face of economic weakness, giving the Federal Reserve greater scope to cut US interest rates.

The news came as president George W. Bush sought to calm nerves over the deteriorating economy by voicing optimism about the long-term outlook. Mr Bush assured the public that the Federal Reserve and Treasury Department would take "appropriate steps" to promote financial market stability.

However, the president reiterated his opposition to a government bailout to solve the subprime mortgage crisis, arguing that excessive government intervention would do more harm than good.

Meanwhile, Fed chairman Ben Bernanke said in a speech that housing woes had spread well beyond subprime loans. "The current high rate of delinquencies and foreclosures is not confined to the subprime market," he said.

He highlighted the "strong correlation" between house price declines and "subsequent increases in mortgage delinquency and foreclosure:.

Both headline and core inflation - which excludes food and energy - were close to zero in February, the Labor Department reported, after accelerating in prior months. The decline was driven by lower energy prices, a smaller increase in food prices and a softening in inputed rents for owner-occupied housing.

David Rosenberg, chief US economist at Merrill Lynch, said: "We are looking for the core inflation data to remain benign through the balance of the year, which in turn should help the Fed in its quest to cut rates."

However, many economists said inflation was likely to tick up again, given the sharp rise in crude oil prices in March.

Mr Bush meanwhile pushed back against growing calls for taxpayer-funded intervention in the mortgage market.

"The temptation of Washington is to say that anything short of massive government intervention in the housing market amounts to inaction," he told the Economic Club of New York. "I strongly disagree."

The White House has threatened to veto proposals by Congressional Democrats to allow bankruptcy judges to restructure mortgages, and allocate public funds for intervention in housing. "Delaying the correction would only prolong the problem," he said.

Mr Bush also said the $170bn (€109bn, £84bn) stimulus package passed by Congress last month should be given time to work before more action was considered. "It's important not to overcorrect because when you overcorrect you end up in a ditch," he said.

The president praised the "strong action" by the Fed and said Mr Bernanke and Hank Paulson, the Treasury secretary, were "on top" of the challenges facing the economy.

massive rate cut coming.

Edited by crash2006

Share this post


Link to post
Share on other sites
The president praised the "strong action" by the Fed and said Mr Bernanke and Hank Paulson, the Treasury secretary, were "on top" of the challenges facing the economy.

Oh good , Bush is saying Ben and Hank have got it all under control , i find this so very reassuring :rolleyes: .

Edited by grey shark

Share this post


Link to post
Share on other sites
Oh good , Bush is saying Ben and Hank have got it all under control , i find this so very reassuring :rolleyes: .

some more reassurances from Dubbya

"My relationship with this good man is where I've been focused, and that's where my concentration is. And I don't regret any other aspect of it. And so I -- we filled a lot of space together." --on British Prime Minister Tony Blair, Washington, D.C., May 17, 2007

"Families is where our nation finds hope, where wings take dream." —LaCrosse, Wis., Oct. 18, 2000

"I know how hard it is for you to put food on your family." —Greater Nashua, N.H., Jan. 27, 2000

"I hear there's rumors on the Internets that we're going to have a draft." —second presidential debate, St. Louis, Mo., Oct. 8, 2004

"You work three jobs? … Uniquely American, isn't it? I mean, that is fantastic that you're doing that." —to a divorced mother of three, Omaha, Nebraska, Feb. 4, 2005

"Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." —Washington, D.C., Aug. 5, 2004

"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again." —Nashville, Tenn., Sept. 17, 2002

Share this post


Link to post
Share on other sites

Yeah I read the CPI thing yesterday but couldn;t find it again because obviously it wasn't widely reported. But I think air fares, autos and clothes were falling.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 298 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.