Of course the Fed is largely responsible, along with the huge real-estate buyers and mortgage GSE's.
As a result of the economy's firmer underlying strength, many analysts now estimate government budget cuts could shave off about 0.3 percentage point from GDP this year, half of what was predicted by the nonpartisan Congressional Budget Office.
"The drag from sequestration is probably a little bit smaller than we thought a month ago," said Mesirow Financial's Laurenti. "We have a better economy that is in a better position to absorb a negative shock." via Easy Fed softens fiscal policy punch on economy | Reuters.
However, we believe we won't really know how average-wage earners/consumers will react until after April's income-tax-return-filing deadline is over and the impact of higher taxes finally sinks in for many who've not really been paying attention or not understood the changes.