NEW YORK, Oct 5 (Reuters) - The failure of the U.S. housing market to fully respond to the Federal Reserve's easy money policies remains a headwind to overall economic growth, an influential U.S. Federal Reserve official said on Friday.
William Dudley, president of the New York Federal Reserve Bank, acknowledged some improvement in housing of late, but said credit availability remains "impaired" and argued that, overall, the pace of the broader U.S. economic recovery has been disappointing.
"While there are several headwinds that have been restraining economic growth, a key impediment is that the housing market has failed to respond fully to the significant easing of monetary policy," Dudley said in remarks prepared for deliver at a residential real estate conference hosted by the New York Fed.
A bubble in the U.S. housing market was at the core of the 2007-2009 financial crisis and the lackluster environment that continues to hamper the world economy today.
The Fed has kept rates ultra low for nearly four years and has bought more than $2 trillion in large-scale assets to kick-start growth and get Americans back to work. It launched a third round of quantitative easing last month and signaled it would keep rates near zero for three more years.
(Reporting by Jonathan Spicer; Editing by Leslie Adler)
Keywords: USA FED/DUDLEY