Federal Reserve Vice Chairman Stanley Fischer said Tuesday that he was worried memories might be fading about the pivotal role that housing played in the financial crisis. “House prices are now high and rising in several countries, perhaps as a result of extended period of low interest rates,” Fischer said in a speech to a DNB-Riksbank conference in Amsterdam, Fischer noted that U.S. government’s role in housing is increasing with Fannie Mae , Freddie Mac and the Federal House Administration “now the dominant providers of mortgage financing.” The Fed’s #2 said “there is more to be done” to strengthen the resilience of the housing finance systems. Just taking the possibility of severe stress seriously would help, he said. And government support for housing should always be made explicit, he added.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News