Susan Wachter, a professor of real estate and finance at the Wharton Business School, told CNBC’s “Power Lunch” that the Federal Reserve won’t cut rates in an effort to help the troubled housing market.
“I think the Federal Reserve is between a rock and a hard place,” she said Tuesday. “The Fed might actually tighten but for the housing market.”
David Blitzer, managing director and chairman of the S&P 500 Index Committee, said the Federal Reserve considers the entire economy –- not just one sector -– when adjusting interest rates.
“I think we forget that the Fed is looking at a lot more than the housing market,” Blitzer said. “It’s looking at the entire U.S. economy, of which housing is an important part and more-volatile-than-average part, but certainly not the whole thing.”
Joel Naroff, chief economist at Commerce Bank, said the housing market has yet to hit bottom.