JANUARY 13, 2012.Little Alarm Shown at Fed At Dawn of Housing Bust
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ECONOMYJANUARY 13, 2012.Little Alarm Shown at Fed At Dawn of Housing Bust .
In his second meeting as chairman of the Federal Reserve in May 2006, Ben Bernanke heard a Fed governor warn about the nation's mortgage market. But Mr. Bernanke described the cooling of the housing boom as a "healthy thing."
"So far we are seeing, at worst, an orderly decline in the housing market," he said.
Mr. Bernanke's words were contained in 1,197 pages of transcripts released Thursday of closed-door Fed meetings from that year. The transcripts paint the most detailed picture yet of how top officials at the central bank didn't anticipate the storm about to hit the U.S. economy ...
JON HILSENRATH, LUCA DI LEO AND MICHAEL S. DERBY
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http://online.wsj.com/article/SB10001424052970204409004577157001537763864.html
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