NEW YORK – The economy has improved, but much work remains, especially in housing, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto said today.
“Though we have seen some signs that the worst may be over, the housing industry is not out of the woods yet; nor is the broader economy,” she said at a housing conference in Ohio, according to prepared text of her speech, which was released by the Fed. “I expect our recovery to be a gradual and bumpy one.”
“We have been responding vigorously on many fronts, and there is still more work to do,” she said, noting that despite progress, “it will take the work of many and a considerable amount of time for housing markets to fully recover.”
And, she noted, “It’s going to take a creative, coordinated and collaborative effort to get our housing market back on track.”
Monetary policy, she noted, can help the housing sector “by fostering stronger growth in the broader economy, which would lead to more stable property values, increased consumer confidence, and lower unemployment.”
The Fed understands the need for action and has “been aggressive in monetary policy, banking supervision, consumer protection regulation, and community development,” Pianalto said. But, with such a large recession and financial turmoil, the challenge to policymakers was “unprecedented,” she added. “While we certainly see ourselves as part of the solution, many partners and much time will be needed to heal these problems.”
