Dissent - the tune of $1.25 trillion—alive. But Bullard...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The Fed is taking steps to end some of the programs it had started to prop up the housing market through the collapse, but according to minutes from the committee’s mid-December session, the decision wasn’t universally viewed as the final action: “If [economists] are wrong, and the modest pace of economic growth slows or mortgage markets significantly deteriorate, ‘a few members’ of the Federal Open Market Committee believe that ‘more policy stimulus’ may be desirable, the Fed minutes said.” James Bullard, the president of the St. Louis Federal Reserve Bank, has publicly said the Fed should keep its program of buying mortgage-backed assets—to
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the tune of $1.25 trillion—alive. But Bullard isn’t currently a member of the committee, which decides such matters, though he will become one later this year. It’s already been estimated that ending the program will push mortgage rates back up by half a point to a point, squeezing some potential buyers out of the housing market. The Fed is walking a “tightrope,” as one economist puts it, between weaning the private sector off of the Fed’s beneficence and sending the housing market off another cliff. Dissent in the halls of the Federal Reserve. (2010). The Big Money , Retrieved from http://www.reuters.com doi: US142613188620100107...
View Full Document

This note was uploaded on 07/07/2011 for the course BUSINESS 350 taught by Professor Mitchell during the Fall '09 term at Troy.

Ask a homework question - tutors are online