In an effort to analyze the current state of the economy, San Francisco Federal Reserve Bank President, Janet Yellen, shared with us her take on things:1
She said that declining home prices could hurt consumer spending, and that risks to economic growth would be “significant” if housing prices fall in the context of rising unemployment.
“The key point is that … a drop in house prices is likely to restrain consumer spending to some extent,” Yellen said.
I’m glad to know that at least people running things are fully aware of the extent of the damage the economy is facing. The key now, is whether or not they can do anything to repair the damage that has been caused.
All we can do now is wait and see . . .
1 Yahoo Finance – Fed’s Yellen: turmoil adds to risk for economy