WASHINGTON (Reuters) - Expanded Federal Reserve efforts to boost tepid growth and cut high unemployment are justified as broken housing markets and depleted household wealth act as a brake on the recovery, a top Fed official said on Monday.
Even though the effect of aggressive Fed policies to ease financial conditions has been muted by declines in house values and consumer reticence, it would be wrong to conclude central bank actions are useless, Federal Reserve Governor Sarah Raskin said.
"The opposite conclusion might well be the case -- namely that additional policy accommodation is warranted under present circumstances," she said at an event sponsored by the University of Maryland Smith School of Business.
via news.yahoo.com
