Industry News

New Fed chief rocks, gets no knocks

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Ben Bernanke, recently nominated to succeed Alan Greenspan as head of the Federal Reserve, has huge shoes to fill, but was a good choice to follow Greenspan, real estate industry figures said. "I think he was a good choice and the markets think he was a good choice," said Doug Duncan, chief economist for the Mortgage Bankers Association. "I think he represents a continuation of Chairman Greenspan's policies in some important ways." Others agreed with Duncan's evaluation. "Everybody's confident about him because he is a student of Greenspan," said Marcus Ortega, an economist with J.P. Turner. Duncan said Bernanke and Greenspan share similar views on productivity and its importance and the continued potential for holding down inflation. Greenspan, who headed the Fed for more than 18 years, reduced interest rates dramatically in 2001, an action said to have fueled the hot housing market. For the last year, Greenspan, and hence the Fed, has raised short-term rates by a quarter perce...