The Wall Street Journal 01/07-08/12
Three Fed Officials Urge Action to Boost Housing
Top Federal Reserve officials ramped up their call for more forceful govt action to fix the broken housing market, expressing frustration that it is blunting their extraordinary efforts to boost the economy. The three speeches marked the movement to campaign by Chairman Ben Bernanke and other Fed officials to push the White House, Congress and regulators to address the problem of the housing market.
William Dudley, president of the New York Fed said, “With additional housing policy interventions, we could achieve a better set of economic outcomes.”.
Addressing such housing problems could compliment more Fed bond buying if officials deem it necessary. Eric Rosengren, the president of the Boston Fed called for additional bond buying, he said those actions “would be even more effective if accompanied” by other steps “designed to speed the recovery in housing”.
Top Fed officials argued that housing woes are undermining the effects of their policies, such as holding short-term interest rates near zero and using securities purchases to push down long-term rates.
Fed officials underscored their policy disagreements with the Federal Housing Finance Agency. The govt took over the mortgage companies three years ago and the rescue has cost $151 billion and counting.
Mr. Dudley called on Fannie and Freddie to reduce loan balances for homeowners with so-called underwater mortgages, in which they owe more than their properties are worth.
Common Sense Review
So the Fed Reserve is having a pissing contest with the Fed Housing Finance Agency at the peril of the people. I am tired of govt agencies always know how to solve the problems the govt created.
No comments:
Post a Comment