NEW YORK (CNNMoney.com) — Two Federal Reserve officials said Friday that the housing market could damage the economy even more severely than it has already if measures are not taken to correct it.
In speeches at the U.S. Monetary Policy Forum in New York, Eric Rosengren, president of the Federal Reserve Bank of Boston, and Frederic Mishkin, a member of the Federal Reserve board of governors, spoke about the critical nature of the housing market crisis.
“Further declines in housing prices could depress residential investment, reduce consumer spending, generate elevated foreclosures, and contribute to financial instability,” said Rosengren.
“Taking appropriate monetary, regulatory, and fiscal actions to mitigate this risk seems prudent.”
Mishkin worried that …
