ederal Reserve Governor Elizabeth Duke said the improving housing market shows that the central bank’s $85 billion in monthly purchases are working to boost the economy.
“Monetary policy has clearly set the stage for a revival of the housing market,” Duke said today according to prepared remarks of a speech in Avon, Colorado. “Record-low interest rates have sparked interest in homebuying. Monetary policy has contributed significantly to the recent improvement in the labor market and thereby begun to ease one of the main sources of weak housing demand.”
Duke’s remarks follow a Labor Department report today showing the economy added 236,000 jobs in February and the jobless unemployment rate fell to 7.7 percent, the lowest since December 2008. Her remarks that the improving housing and labor markets show the Fed’s asset purchase program is working, add to those of Fed Chairman Ben S. Bernanke and Vice Chairman Janet Yellen extolling the program.