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Budget deficit picture brightens
The Treasury Dept. said it needs to borrow $38 bil from capital markets in the April-June quarter, half of its Feb. estimate of $75 bil. It said it borrowed a record $146 bil in the Jan.-March quarter, but that was far less than the $177 bil it had expected. Treasury credited lower tax refunds and higher tax receipts.
Homes more affordable in Q1
The National Association of Realtors, citing higher family income and lower home prices, said its housing affordability index rose to 144.1 from a revised 138.7 in Q4 '03 but slightly below 144.9 a year earlier. A typical family could afford a home costing $246,100, well above the median price of $170,800, NAR said. Mortgage rates have jumped to 2004 highs in Q2, but NAR says affordability remains high.
"Shadow' FOMC urges rate hikes
The unofficial group of monetarists said current Fed policy is "inconsistent with maintaining price stability." The SOMC said faster growth and accelerating inflation are "pushing the real ...