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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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Wells Fargo Economics Scott Anderson, Ph.D. Senior Economist Economic Outlook Sedona, AZ March 9, 2006
2006 Fed Wins War on Inflation
Fed Activity Federal Funds Target Rate Source: Federal Reserve
Yield Curve Flat As A Kansas Corn Field – Inversion Risk Rises
Headwinds for Consumer Spending Source: Federal Reserve; Dept. of Energy; Oil Price Info. Service; Census Bureau; Wells Fargo Economics
Originations by Amortization Type Source: Mortgage Bankers Association
Corporate Profits After tax with iva & ccadj Billions, SAAR Source: BEA