Summers Says House Prices Are ‘Scary,’ Questions Fed MBS Buying By Bloomberg
(Bloomberg) -- Former Treasury Secretary Lawrence Summers said the surge in U.S. house prices is “scary” and questioned the wisdom of the Federal Reserve continuing to purchase mortgage-backed securities as part of its stimulus campaign.Three days after data showed home prices jumped the most in 30 years in April, Summers told Bloomberg Television’s “Wall Street Week” with David Westin that such gains are inflationary and would likely drive other prices higher.“This is scary,” said Summers, a paid contributor to Bloomberg. “Rising house prices in most people’s common sense of the world represents inflation.” He predicted property...
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