Skip navigation
Watchlist Sponsored By :

Current DateTime: 12:18:22 11 Jul 2009
LinksList Documentid: 24355697
  • Highest Grossing Movies

      What are the highest grossing movies of all time, adjusted for inflation? Click ahead to find out!

  • Most Expensive Places To Live

      Each year, Mercer Consulting assembles its ranking of the most expensive places to live. Mercer compiles information from 143 cities worldwide.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.


Current DateTime: 12:18:22 11 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Fed Official Says Housing Market to Weaken Further
By: Reuters | 19 Nov 2007 | 06:51 AM ET
Text Size

Minneapolis Federal Reserve Bank President Gary Stern said on Monday he expected the U.S. housing market to weaken further because of a large pool of unsold homes.

AP

But employment and incomes were still rising, Stern said, and that would underpin consumption.

"The adjustment in the housing market has still some way to go. The reason I say that is because of the huge inventory of unsold homes," Stern told reporters in Singapore.

"I would expect new home building to remain quite constrained. It is also true foreclosures will go up rather than down over the next several quarters," he said on the sidelines of a risk conference in Singapore.

Earlier on Monday, he told the conference that the absence of pre-emptive action on interest rates by the Fed was not behind the subprime mortgage crisis, and he warned against rushing to push through reforms during the credit turmoil.

Delinquencies May Rise

Stern said that financial markets were braced for a rise in delinquencies and would not be surprised by such data.

While it was likely there would be a reduction in new home building in the United States for a while, the growth numbers so far showed the economy was resilient to the credit market turbulence, he said.

"At least so far, other aspects of the economy have more than outweighed the housing sector. Housing is only 5-6 percent of the economy," he said.

The U.S. economy expanded at a 3.9 percent annual pace in the July-September quarter, following growth of 3.8 percent in the second quarter.

Responding to the credit crisis, the Federal Reserve has cut its fed funds target twice by a total of 75 basis points to 4.5 percent, and market participants are increasingly speculating there will be another cut when the Fed meets on Dec. 11.

Stern declined to comment on the possibility of another rate cut but said the Fed remained flexible on policy. "We have to see how things evolve," he said.

Overall inflation in the United States was modest, despite a rise in fuel and food prices, he said.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon


Current DateTime: 03:50:00 10 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:09 10 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 06:35:27 10 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:34 10 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters