By Robin Harding in Washington
Published: September 21 2010 19:34 Last updated: September 21 2010 19:34
The Federal Reserve took no action at its September meeting but sent a signal that it may soon restart large purchases of Treasury bonds by changing its policy statement.
After its meeting on Tuesday, the rate-setting Federal Open Market Committee said that it “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.”
MIT Prof Says Housing Demand Is about to Take Off At least some analysts are bullish on housing.
William C. Wheaton, professor of economics at Massachusetts Institute of Technology, argues that the housing market is due for improvement, calling home construction, "a sleeping giant that is about to wake up."
Wheaton believes that because there has been so little construction that demand exceeds the level of building and it will soon absorb excess inventory.
"Housing construction will not only rise, but it will stay high for a while, which didn't happen in previous recoveries," Wheaton predicts.
Source: Fortune, Nin-Hai Tseng (09/17/2010)