Washington, D.C. -
Federal Reserve Chairman Ben Bernanke has issued a Call-To-Action saying with out a housing recovery, the economy will continue to recover at an oozing pace. Bernanke said depressed housing prices are a serious drag on an economic recovery.
"The state of housing has been an impediment to a faster recovery," he told a home builders' conference. "We need to continue to develop and implement policies that will help the housing sector get back on its feet."
In a typical recovery, a rebound in housing fuels hiring and income gains, but that has not been the case this time, the Fed chairman said. Recent declines in home prices have slashed household wealth by as much as $7 trillion, he said. He also blamed overly tight credit despite the Federal Reserves efforts as another leading cause along with new imposing looking documentation and rules for solid homebuyers who qualify.