Robert McGee Quotes on Past (2 Quotes)

As home prices level off, so will the growth of equity that has supported consumer spending in the past. The impact from higher interest rates on home equity loans and adjustable rate mortgages will combine with stubbornly high energy prices to squeeze discretionary spending.

The balance of risk is shifting from inflation to slower growth. The full impact of the past year's tightening has yet to be felt, which should raise a caution flag for the Fed.