Stimulus

Little Bounce Seen From Federal Reserve Stimulus

Weak economy means inflating home and stock prices does little

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Federal Reserve stimulus has buoyed home and stock prices, but that won't generate as much an economic bounce as wealth gains once did, according to a recent study.

The financial crisis eroded the so-called wealth effect that Americans feel from rising property and stock values, producing a weaker spending boost, said Credit Suisse analysts Neal Soss and Henry Mo.

That makes the 7% yearly increase in the Case-Shiller home price index and the near-record high of the Dow Jones industrial average less encouraging.