Fed sees housing correction a likely to continue to weigh heavily on economy

The May 9 FOMC meeting minutes released today confirm that the housing sector is slowing more than the US Federal Reserve had previously anticipated:  See Bloomberg: Fed sees housing dampening growth longer than expected (update 3): “The correction of the housing sector was likely to continue to weigh heavily on economic activity through most of this year,'' the Fed said in minutes of the May 9 Federal Open Market Committee meeting released in Washington. That assessment was “somewhat longer than previously expected,'' the Fed said.  At the same time they reiterated that persistent inflation remains the biggest risk that must abate meaningfully before any monetary easing can be contemplated.