Via Reuters:
"Given the current outlook for the economy, my personal view is that we've not yet reached a neutral policy stance," Guynn said in prepared remarks to the Certified Professional Home Builders in Atlanta. The Fed released a text of his speech in Washington.
...
The Atlanta Fed president added to recent warnings by Fed officials and others about possible regional U.S. housing bubbles. Investors gambling that housing prices will soar indefinitely are likely to be disappointed, he said.
"There are some local markets, especially in coastal Florida, where I've heard stories for more than a year about behavior that's got to be characterized as nothing other than speculation," Guynn said it response to questions after his speech.
"It makes me very uncomfortable," he added. "Some buyers, some builders, some lenders are going to get burned, could very likely get burned, in some of those local markets."
Leave a comment