WASHINGTON — Federal Reserve Chairman Ben Bernanke has signaled a halt to further rates cuts citing a larger concern now over inflation worries, as it has now reached an annual rate of 3.9% for April.
But inflation isn't the only gauge for a downslide, as the housing spiral continues, with the Mortgage Bankers Association yesterday reporting 8.8% of mortgages as past due or already in foreclosure. The MBA's report said it was the worst three months for home loans since the 1970s. The visibility of troubled homeowners has moved from the subprime sector onto ostensibly wealthy Americans, with Ed McMahon's Beverly Hills mansion and baseball's Jose Canseco's Miami home on the block, garnering headlines.
Meanwhile, the nation's unemployment rate jumped to 5.5% in May as soaring gas prices led employers to cuts jobs. With airlines raising prices and auto manufacturers shuttering plants and consumers cutting back on spending, economists are predicting a very tough summer period.
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