The Case-Shiller data shows that US housing is improving all on its own.
So what does the Fed want to do? Unleash a third round of QE directed at mortgage-backed securities.
Certainly the housing market still has a long way to go but it’s another classic example of a central bank that’s behind the curve and taking action after the market has already moved.
The FOMC should have been focused on housing a year ago. Now it’s manufacturing that needs help.
