Eric Rosengren, an influential regulator at the U.S. Central Bank, is urging global regulators to consider tools to cool down the U.S. real estate prices. He believes that the significant rise in apartment prices may indicate financial instabilities that rates alone can’t contain. He states that a “greater emphasis on macro-prudential tools” such as rules and restrictions on bank holdings should be considered.
Are these rapid price increases a concern? Could this lead to another global financial crisis like 2007-2008?
See full article https://www.cnbc.com/2017/03/22/hot-us-real-estate-a-potential-red-flag-feds-rosengren.html
