Econintersect: Charles I. Plosser, President of the Federal Reserve Bank of Philadelphia believes the dual mandate (inflation and employment) has lead to expansionary objectives for monetary policy which are risky.
I have concluded that it would be appropriate to redefine the Fed’s monetary policy goals to focus solely, or at least primarily, on price stability. I base this on two facts: Monetary policy has very limited ability to influence real variables, such as employment. And, in a regime with fiat currency, only the central bank can ensure price stability. Indeed, it is the one goal that the central bank can achieve over the longer run.
Blue Line 4 Week Average
The market was expecting 330,000 vs the 339,000 reported. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average improved, moving from 348,250 (reported last week) to 344,000.
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list is about American corporate socialism ........ and the last article is about plummeting mortgage delinquency and foreclosure rates.
Econintersect: Japan's economy slumped in the third quarter but still managed to beat expectations. GDP advanced by 0.5% vs. consensus expectations of 0.4%. The growth was a significant slowdown from the 0.9% increase registered in the second quarter. This was the fourth consecutive quarter of growth, the longest sequence since 2010. The third quarter number was dragged down by low capital expenditure growth (0.2%) and by private consumption (0.1%). All the reports are for quarter-to-quarter growth. Year-over-year GDP was up by 1.9%.
Econintersect: A new housing release shows that median home values in many small counties across the nation held steady after the most recent recession, while values in large counties declined. In 66.9 percent of the 1,038 smaller counties (with populations between 20,000 and 65,000) the median home value in the post-recession period of 2010-2012 was not statistically different from the recession period of 2007-2009. Similarly, the median home values in 37 of the 50 smallest counties of this size were not statistically different from the recession period.