David Rosenberg, chief economist and strategist with Gluskin Sheff & Associates Inc., usually spends the first Friday of the month poring over U.S. labor-market data. Today, he’s planning a different kind of crunching.
Home prices could fall by as much as 10 percent this year, and the labor market is showing signs of wavering, even with Federal Reserve efforts to stabilize the economy, said Chris Low , chief economist at FTN Financial in New York.
In selling an expanded payroll tax cut to lawmakers, the Obama administration faces the predicament it confronts in defending its $825 billion stimulus package: making a case that the economy would be worse without it.
Most economists surveyed now say the Federal Reserve will begin tapering asset purchases in December after Chairman Ben S. Bernanke reset the central bank’s timeline by maintaining the pace of bond-buying earlier this week.