Bloomberg (02/25/13) Joshua Zumbrun; Steve Matthews
U.S. Federal Reserve chairman Ben Bernanke’s strategy of holding interest rates low and pressing on with bond purchases of $85 billion a month has led to job growth in the auto and housing industries. Consumers rely on loans to buy cars and homes, so these segments of the economy are among the most responsive to the effort.
“The rate-sensitive sectors, most notably housing and autos, are kicking into a higher gear,” says Mark Zandi, chief economist for Moody’s Analytics Inc. Zandi predicts total job growth this year of “close to two million,” about the same as last year. “But I expect closer to three million more jobs in 2014 and the same in 2015.” Much of the increase will come from “more housing construction, consumer spending driven in part by rising house prices, and more auto production,” he adds.