Prices May Be High Today, but in a Different Way than Bubble Era

Economists at the Federal Reserve Bank of San Francisco found that the ongoing rebound in U.S. home prices is different from “the credit-fueled run up that fanned the financial crisis,” Bloomberg reports.

According to San Francisco Fed President John Williams, the distinction matters. He recently warned that monitoring for asset price bubbles is important to prevent imbalances. Williams says that one way this could be done is by raising interest rates off near-zero.

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