Builders started construction on a seasonally-adjusted annual total of 1.53 million homes in August, down from 1.68 million homes in 1999. The Council provides non-partisan information services and staff support to the Colorado Legislature. The Federal Reserve Board did not change interest rates at its October meeting, encouraged by indicators that earlier rounds of interest rate increases and higher energy prices are doing the job of slowing the economy. The national economy is slowing, though it remains very healthy. However, there are reasons for concern that the slowdown could deepen.
Inflation remains the primary concern for the national economy.
The energy markets have been highly volatile. If oil prices move higher and stay at that level for a long period of time, businesses will feel more pressure to pass on their increased costs. Additionally, workers could believe that high energy prices are permanent and increase their wage demands, thus putting more pressure on prices. The low value of the euro currency also causes concern for the U.S. economy. The European markets are less able to make purchases of U.S. goods and services, given the low value of the euro.