President Obama wants to reduce the government's role in the mortgage giant by phasing out mortgage financing giants Fannie Mae and Freddie Mac. The idea has broad support, but interest rates on home loans would go up, especially for low-income families.
In a shift, President Obama offers Republicans a new 'grand bargain' – cuts in corporate taxes in exchange for a jobs program. The recovery in the labor market makes Obama's jobs program a tougher sell.
Housing starts fell sharply in June, with US builders starting work on fewer single- and multi-family homes. But there was some good news for the housing recovery: Permit applications for single-family homes hit a five-year high.
Retail sales increased for the third straight month in June, but fell well short of expectations. The retail sales report might hint that consumers are feeling the delayed effects of January's payroll tax hike, according to some analysts.
The economy added 195,000 jobs in June, a strong showing that beat analysts' expectations. Steady job growth is good news, but it means that higher interest rates and an easing of Federal Reserve bond buying could come sooner rather than later, putting investors on edge.
Auto sales continued strong in June, with Detroit's Big Three and Japan's major automakers posting impressive gains. But none could top the flashy year-over-year auto sales gains of a smaller player.
Wall Street's second-quarter swoon began when the Federal Reserve began to hint that it would pare back its bond-buying program sooner rather than later. Bonds tumbled and gold endured its worst quarter since at least 1968. But in the broader economy, the economic indicators point to continued growth, albeit sluggish.