Vital Signs: New Plan Could Help Mortgage Market
The drumbeat of bad economic news continues, and policymakers keep coming up with big-money strategies to arrest the damage. The latest move by the Federal Reserve and Treasury Dept. commits up to $800 billion in support of the mortgage and consumer loan markets. That action comes on the heels of news that the incoming Administration is considering fiscal stimulus somewhere between $500 billion and $700 billion, or between 3% and 5% of gross domestic product. Clearly, the wide range of fiscal actions now under consideration will offer major support to economic growth over the next two years, but the Fed’s latest program could be more important.
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