SEARCH BLOG: FEDERAL RESERVE
Yesterday, I sent an article about the Chicago condo market to my oldest son who has a beautiful condo directly across from the Aon Center building in downtown Chicago. He and his wife moved to San Francisco and have been renting it out because the resale market has been so depressed. I also wrote:
I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.Today, I read about the first signs that the Fed might be moving toward more concern about the financial/housing markets than inflation:
Fed tries to calm jittery markets..
Financial concern about the credit crunch swept through Europe and into the United States on Thursday. That prompted the Europeans to pump $130 billion into their financial system. Asian central bankers followed suit, while the U.S. Federal Reserve added $24 billion in temporary reserves to the U.S. banking system.
On Friday, the Fed pushed another $38 billion in temporary reserves into the system -- the biggest injection since the days following the Sept. 11 attack.