Wells Fargo Weekly Economic and Financial Commentary, March 22, 2013

  • by BPC Staff
  • on March 22, 2013

In This Issue:

Housing Should Continue to Add to Economic Growth

  • As expected, the FOMC kept rates unchanged, but much of the uncertainty has been centered on the Fed’s open-ended bond purchases. Although the statement did not provide explicit guidance, the policy paragraph did provide a hint.  We suspect, if the recent pickup in the labor market proves sustainable, the Fed may begin cutting back on the amount of purchases sooner than initially expected.
  • Housing indicators released during the week including starts and existing home sales continue to reflect a modest housing recovery.  With the recovery still intact, housing will continue to add to economic growth throughout the year.

Read the Commentary Here