Money

Economic and Financial Developments

The economic expansion that began in the middle of last year is proceeding at a moderate pace, supported by stimulative monetary and fiscal policies. Although fiscal policy and inventory restocking will likely be providing less impetus to the recovery than they have in recent quarters, rising demand from households and businesses should help sustain growth. In particular, real consumer spending appears to have expanded at about a 2-1/2 percent annual rate in the first half of this year, with purchases of durable goods increasing especially rapidly. However, the housing market remains weak, with the overhang of vacant or foreclosed houses weighing on home prices and construction.

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This past week the Senate Finance Committee held hearings about two important issues,  Choosing to Work During Retirement and the Impact on Social Security and The Future of Individual Tax Rates: Effects on Economic Growth and Distribution.

Here is some of the testimony from the 'Work During Retirement issue from Stephen C. Goss, Chief Actuary of the Social Security Administration:

Scenario 1: Increase Work at Age 62 and Older by 10 Percent
... labor force participation has declined generally for men and has risen for women since 1950 and 1970. Under the Trustees intermediate assumptions, participation rates are projected to rise in the future at age 65 and older, on an age adjusted basis, to levels closer to those experienced back in 1970 for males and to double the rates from 1970 for females.

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The Federal Reserve is a destination for information that more of us should refer to. For instance July 15 was the first of four public hearings this year on potential revisions to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The event was held July 15 at the Federal Reserve Bank of Atlanta.

HMDA requires lenders to provide detailed annual reports of their mortgage lending to regulators and the public. The hearings will help the Board gather information about whether its current regulations are working as intended and what changes might be needed.

But now to some other current news the Fed about new Bank Overdraft Rules:

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The Congressional Research Service provided a summary of their report prepared for Congress released on  June 22 regarding The Volcker Rule, named for Paul Volcker who was the Fed Chairman from 1979 to 1987. The CRS does not release their reports directly to the public; the FAS  collection of CRS reports primarily addresses national security, foreign policy and related topics. These reports are provided without CRS authorization as a public service.

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