'Credit Crunch' More Worrisome to CBS than Inflation

Inflation? Forget about it. Let the economists and policy wonks worry about it.

The Federal Reserve’s decision not to drop interest rates drew the ire of “CBS Evening News” correspondent Kelly Wallace on August 7. Wallace’s story about the “credit crunch” centered on Amanda Michalko, a 26-year old Michigan resident, who would not benefit from lower monthly payments on her pending mortgage because of the Fed.

CBS seemed to disapprove of the Fed’s ruling.

“[Despite mortgage defaults] experts say the Fed is more concerned about holding down inflation than easing the credit crisis. That’s why it held the line on interest rates for now,” said Wallace.

But in the end, despite the Fed’s inaction, CBS’s worries about Michalko were just plain silly – she’s still getting a mortgage.

“As for Amanda, she is close to getting a mortgage, but only after her dad co-signed her application,” reported Wallace.