Federal Reserve Chair Janet Yellen is optimistic about the U. S. economy as a whole, but expresses caution about the housing market, noting it has been a key part of the recovery since 2011 but has fallen short this year, according to CNNMoney.com. Noting that warmer weather may not be sufficient to improve the housing market, she says, “The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery.” The Federal Reserve has maintained the short-term interest rate near zero since 2008 as it attempts to stimulate the economy through low-cost money for businesses and homebuyers, although mortgage rates did rise last year as the Fed tapered its bond-buying program. While vague in response to questions about when the Fed may raise interest rates, as MHProNews has learned, Yellen expects the economy to grow faster this year than last and the unemployment rate to continue its decline. ##
