So, if the GSEs were privatized, it would seem advisable to retain some means of providing government support to the mortgage securitization process during times of turmoil. One possible approach, suggested by Federal Reserve Board economists Diana Hancock and Wayne Passmore, is to create a government bond insurer, analogous to the Federal Deposit Insurance Corporation (FDIC).
In the transportation industry, where labor shortage is acute, one of the major companies announced this spring that it planned to raise the prices of its home delivery services, and competitors followed suit. This episode suggests that upward pressure on prices stemming from the rise in wage costs has been mounting. Second, consumers' and customers' perception of price rises has been changing.