Morning Report – Slow data week ahead 9/8/14

Slow news day. The week following the jobs report always has a dearth of data, so there isn’t much on the economic front to talk about.

We will get consumer credit out of the Fed sometime this afternoon.

Why is credit so tight for first time homebuyers and people with low FICOs? Ask Washington. It seems like the authorities are now forcing buybacks and fines over relatively minor errors, and as a result, lenders are refusing to extend credit to low-income / low FICO borrowers. Of course the Administration continues to exhort the industry to loosen standards at the same time it announces record settlements.

A majority of primary dealers see the first rate hike in the second quarter of 2015. The median forecast for the Fed Funds rate at the end of 2015 is 1% and 2.5% for the end of 2016.

Hawk Charles Plosser says that keeping rates near zero until the Fed’s goals are achieved is a risky strategy.

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