The collapse in new housing activity and weakness in the auto market are a drag, but strength elsewhere has kept the economic engine operating on all cylinders.

In response to the bursting of the housing and credit market bubbles, the Federal Reserve has resorted to an array of unorthodox policy measures. Interest rates have been cut at a record pace, a rescue of Bear Stearns was orchestrated, and policy measures not used since the 1930s have resurfaced.

Panelists...