Ben Bernanke Latest News: Did Bernanke Just Kill the Housing Recovery?

Wochit 1:18 mins

Did Bernanke Just Kill the Housing Recovery?That's the question Wall Street and Main Street have been contemplating after another spike in interest rates. Stan Humphries, chief economist at Zillow, has a ready answer.No. "I think Bernanke's right, the housing market is strong enough to stand on its own feet." Homes are going to get more expensive, as financing costs go up. Fasten your seatbelts. And expect lots of turbulence. If that was the message Ben Bernanke was trying to deliver when he said the Federal Reserve could soon start scaling back its massive stimulus program for the U.S. economy, it's safe to say investors received it loud and clear. In fact, the sell-off in stocks, bonds and commodities that rippled around the globe after Bernanke's remarks looks to some like the dawn of a new period of volatile, disorderly trade - a stark change from the calm that prevailed since the Fed began its most recent bond-buying program last autumn. Only a few days ago, the leading Wall Street debate was whether central banks had too much control over the financial markets. Suddenly, the nagging notion is whether central banks are losing, or surrendering, control.

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