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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Is home ownership dead? Harvard’s Joint Center for Housing Studies provoked that question with a report analyzing the continuing decline in the nation’s home ownership rate. The analysis, in the Center’s annual “State of the Nation’s Housing” report, identified several factors responsible for the downward ownership trend, and concluded that it’s not going to be reversed any time soon.

We’ll talk about the employment report a little later (it was better than pessimistic analysts expected) but just for fun, let’s start with the housing data, only because it continues to bewitch, bother and bewilder analysts trying to interpret it. The March reports were no exception.

As summer settles in, chasing lingering memories of record-setting snowfalls and damaging ice dams, all eyes remain focused firmly on the employment reports and on the Federal Reserve’s reaction to them.

Better, worse and worrisome. That pretty much summarizes the January and February economic and housing reports.