Fed’s Dudley Calls for Breaking ‘Vicious Cycle’ in Housing

Federal Reserve Bank of New York President William C. Dudley said falling home prices pose “a serious impediment to a stronger economic recovery” and predicted “continued modest growth” for the U.S.

“Continued house price declines could lead to even more defaults, foreclosures and distress sales, undermining wealth, confidence and spending,” Dudley said in the text of remarks given at Fordham University in the Bronx today. “Breaking this vicious cycle is one of the most pressing issues facing policy makers.”