Inflation Pressures Are Easing but Rate Cut Forecast Remains Uncertain

The New Year is beginning where the old one ended -- with uncertainty about when – or whether – the Federal Reserve will begin cutting interest rates.

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Reports on housing market conditions during the past year have chronicled the disconnect between an economy hobbled by the pandemic and a housing market that seems to exist in an alternate universe, seemingly unaffected by lockdowns, job losses, and economic uncertainty. 

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The old year has ended.  (We stayed awake past midnight on New Year’s Eve, just to be sure.) Looking ahead, we’ve compiled an assortment of  predictions for those who prefer not to rely on their own crystal balls to anticipate what the coming year will bring. 

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The December employment report was a good news-bad news-good news story. The good news:  Employers added nearly 50,000 jobs and the unemployment rate fell, after remaining essentially flat for the previous two months.

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Controlling the virus and boosting the economy aren’t mutually exclusive, economists and health care experts agree; but they are mutually difficiult.