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58 | Th e M Rep o RT O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SECONDARY MARKET Department economic indicators improve despite drag from Housing The housing market is getting better, but it isn't good enough yet. a gauge of leading eco- nomic indicators in the United States improved in June, bolstering economists' forecasts of expansion in the year's second half. The Conference Board's Leading Economic Index (LEI) edged up 0.3 percent last month to 102.2, flattening out slightly after May's 0.7 percent pickup. "Broad-based increases in the LEI over the last six months signal an economy that is ex- panding in the near term and may even somewhat accelerate in the second half," said Ataman Ozyildirim, economist at the Conference Board. Ozyildirim attributed the in- crease to ongoing positive trends in the labor market and an improved outlook for new manufacturing orders, which have helped offset some of the weakness observed in housing so far this year. Indeed, the home market continued to provide some drag in the latest index, with housing permits proving to be the weak- est indicator. The government reported ear- lier this month that total housing permits in June were down 4.2 percent month-over-month, though single-family permits ticked up 2.6 percent. Starts, meanwhile, declined on both sides as a decline in the South weighed down gains elsewhere in the country. A stronger housing market, along with increased business investment "could ... provide an upside to the overall economy," said Ken Goldstein, economist at the Conference Board. Federal Reserve Chair Janet Yellen appears to feel the same way. In recent testimony before Congress, Yellen once again not- ed that the housing sector "has shown little recent progress." "While this sector has re- covered notably from its earlier trough, housing activity leveled off in the wake of last year's increase in mortgage rates, and readings this year have, overall, continued to be disappointing," the Fed chief acknowledged. Both of the measures tracking lagging and coincident eco- nomic metrics also improved. According to the Conference Board, the Coincident Economic Indicator for June increased 0.2 percent to 109.2, while the Lagging Economic Index was up 0.5 percent to 124.4. House gOP Highlights dodd- Frank Failures Republicans have produced a 100-page release detailing perceived failures of Dodd-Frank. c ongressional Repub- licans, on the four- year anniversary of the Dodd-Frank Act, fired out at the controver- sial legislation, saying that the act's purported purpose to end the government's "too big to fail" policy has itself failed. The House Financial Services Committee released a 100-page report titled "Failing to End 'Too Big to Fail': An Assessment of the Dodd-Frank Act Four Years Later," which asserts that the act perpetuates a dangerous policy of bailing out lenders that fleece American taxpayers, under the presumption that not bailing them out would make mat- ters far worse. GOP leaders say that Dodd-Frank was supposed to put an end to this perspec- tive, but instead makes sure it continues. "In no way, shape or form does the Dodd-Frank Act end 'too big to fail,'" said Jeb