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2006 Economic Outlook: Wells Fargo Analysis on Inflation, Consumer Spending, and Housing Market

In this 2006 economic outlook by Wells Fargo's Scott Anderson, Ph.D., key themes include the Federal Reserve's success in combating inflation and the implications of a flat yield curve. The report highlights a notable slowdown in the housing market, which affects consumer spending, job growth, and credit quality. As home equity declines, the report raises concerns over headwinds for consumer spending and discusses the factors influencing business spending and corporate profits. The analysis draws on various economic data sources, providing a comprehensive view of the economic landscape.

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2006 Economic Outlook: Wells Fargo Analysis on Inflation, Consumer Spending, and Housing Market

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  1. Wells Fargo Economics Scott Anderson, Ph.D. Senior Economist Economic Outlook Sedona, AZ March 9, 2006

  2. 2006 Fed Wins War on Inflation

  3. Fed Activity Federal Funds Target Rate Source: Federal Reserve

  4. Yield Curve Flat As A Kansas Corn Field – Inversion Risk Rises

  5. 2006: A Change In Economic Leadership

  6. Housing Slowdown Commences

  7. Home Equity “Fountain of Youth” Dries Up

  8. Consumer Spending, Job Growth, Credit Quality At Risk

  9. Headwinds for Consumer Spending Source: Federal Reserve; Dept. of Energy; Oil Price Info. Service; Census Bureau; Wells Fargo Economics

  10. Originations by Amortization Type Source: Mortgage Bankers Association

  11. Inventory Building And Int’l Trade Ease The Transition

  12. How Solid Business Spending ?

  13. Corporate Profits After tax with iva & ccadj Billions, SAAR Source: BEA

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