Question

What role has the Federal Reserve System played in the current housing market?

Answer 1

Role of the Federal Reserve in the current housing market are as follows-

A. Federal Reserve is continuously changing the monetary policy which is affecting the demand and supply in the real estate market and affecting the housing prices

B. Federal Reserve is also trying to change the interest rate continuously which is affecting the prices of the housing and it is also trying to influence the demand and supply.

C. Federal Reserve also try to regulate the real estate markets by changing the requirements of commercial banks by influencing the overall Reserve requirement of the commercial bank so their lending capacity is affected

D. Federal Reserve is also trying to help the the regulatory authorities in fixation of various types of rules and regulations by continuously assisting in formulating such regulations which are helpful in synchronisation with the overall economic policies.

E. federal reserve are also providing out with bailout packages to many of the housing companies if they are not able to survive and sustain with Economic adversity

F. Federal Reserve acts as maintenance of demand and supply at the appropriate level and it helps in keeping the housing sector in synchronisation with the economic policies.

These are the role of the Federal Reserve which will be helpful in controlling the housing market in an economy.