Public Policy

Brookings Institution Donald Kohn, a former vice chairman of the Federal Reserve, said on CNBC today that the Fed did the right thing by cutting interest rates this week. In the face of challenges posed by the coronavirus, Kohn said it is better for the Fed to be proactive – rather than waiting to react if the economy grows worse. Fed made ‘right choice’ on cutting rates, says ex-Fed vice chair from CNBC.…

CNBC provides a look at the impact the Federal Reserve’s rate cut is having on homebuilder stocks. Homebuilder stocks jump on news of a rate cut from CNBC.…

The Federal Reserve voted unanimously to cut interest rates on Tuesday in an attempt to head off economic damage caused by the coronavirus. It is the largest cut since 2008. Here’s a look at how people are reacting to the vote – and what they’re saying it means for homeowners. Dr. Lawrence Yun, Chief Economist at the National Association of Realtors, said: “The coronavirus has quickly upended global economic expansion and introduced the significant uncertainty of a possible recession. Today’s interest rate cut is therefore an appropriate response to changing events. The real estate sector will hold up very well because of the rate cut. Hesitant homebuyers will be enticed to take advantage of low interest rates. Commercial property prices…

Housing was not a major – or even passing – area of focus in Wednesday night’s Democratic presidential debate in Las Vegas, though the issue of redlining came up a few times as candidates discussed tax policy and each other’s records. (Redlining is the practice of denying mortgages – or other goods or services – to whole neighborhoods on the basis of race or ethnicity. The Community Reinvestment Act of 1977 made all redlining practices illegal.) Here’s a look at what the candidates had to say on the issue: Senator Elizabeth Warren referred to former New York City Mayor Mike Bloomberg’s record, accusing him of supporting redlining in the past. SENATOR ELIZABETH WARREN: Democrats are not going to win if we have a…

With the release of the Federal Reserve’s minutes from its January meeting, economists told CNBC on Wednesday they expect interest rates to hold steady throughout the year, given the state of the economy and the fact that it is an election year. RBC Capital Markets economist Tom Porcelli and Kevin Caron of Washington Crossing appeared on “Power Lunch” to discuss interest rates. Watch below.…

Democratic presidential candidate Mike Bloomberg announced Tuesday he would merge Fannie Mae and Freddie Mac into a single government-owned mortgage guarantor, as part of a larger package of initiatives “to reform Wall Street and put the financial system to work for every American.” An announcement from the Bloomberg campaign said merging Fannie and Freddie would “ensure taxpayers are properly compensated for loan guarantees and low-income households are well served.” Bloomberg said his plan would gradually merge Fannie and Freddie into a single, fully government-owned mortgage guarantor, “to ensure that taxpayers are fully compensated for the risks they are assuming – and that lower-income households are well served.” The plan calls for the guarantor to transfer downside risk to private investors…