Home Sales, Consumer Confidence And Bernanke All On Positive Side | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Home Sales, Consumer Confidence And Bernanke All On Positive Side

Today's economic indicators all point up:

-- New Home Sales: There was a 15.6 percent surge in sales of new homes in January from December, the Census Bureau and Department of Housing and Urban Development say. That was the biggest one-month gain in nearly 20 years, according to The Associated Press. At an annual rate of 437,000, the sales pace was the strongest since July 2008. The data are another in a series of signs in recent months that the previously weak housing sector is now one of the economy's bright spots.

-- Consumer Confidence: "The shock effect" caused by last year's "fiscal cliff" debate and this year's increase in payroll taxes apparently abated this month because consumer confidence rebounded, the private Conference Board says. Its widely watched consumer confidence index rose to 69.6 from 58.4 in January.

-- Bernanke Sees Growth: In the first of two days of congressional testimony this week, Federal Reserve Chairman Ben Bernanke told lawmakers that even though economic growth paused in fourth-quarter 2012, "available information suggests that economic growth has picked up again this year." According to the AP, Bernanke is basically saying that "the Federal Reserve's low interest-rate policies are providing key support for an economy still struggling with high unemployment." And, he is "signaling that the Fed's efforts to keep borrowing costs low will continue."

Bernanke is also giving Congress a warning, though. The so-called sequester — about $85 billion worth of automatic spending cuts that would begin to kick in this Friday — would put a "significant ... near-term burden on the [economic] recover," he says.

Bernanke's prescription:

"To address both the near- and longer-term issues, the Congress and the Administration should consider replacing the sharp, front-loaded spending cuts required by the sequestration with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run. Such an approach could lessen the near-term fiscal headwinds facing the recovery while more effectively addressing the longer-term imbalances in the federal budget."

Wall Street seems to like what it's hearing today. Though stock markets overseas were down earlier today, the Dow Jones industrial average and other U.S. indexes are on the rise.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

WAMU 88.5

Art Beat With Lauren Landau, July 31

Today you can rock out to some familiar tunes or check out a local band’s debut album.

NPR

Red Robin's 'Monster' Burger Wins Xtreme Eating Awards

The Center for Science in the Public Interest says, at more than 3,500 calories, it's the "single unhealthiest" meal among 200 chain restaurants.
WAMU 88.5

Jonnie Williams On Stand Again Today In McDonnell Corruption Trial

Former Star Scientific CEO Jonnie Williams will take the stand again today in the trial of former Virginia Gov. Bob McDonnell, and his testimony could be key in the case.

NPR

Can Pinterest Compete With Google's Search?

Pinterest has created a database of things that matter to humans. And with a programming team that's largely been hired away from Google, the company has begun offering what it calls "guided search."

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.