Fisher Sees New Housing Bubble Signs, Warns of MBS Buys

Politics Reuters

Federal Reserve Bank of Dallas President Richard Fisher (R) testifies alongside FDIC Vice Chair Thomas Hoenig before the House Financial Services Committee hearing on "Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts" on ... Capitol Hill in Washington June 26, 2013. REUTERS/Yuri Gripas (UNITED STATES - Tags: POLITICS BUSINESS) - RTX111V7 (Reuters)

A top Federal Reserve official said on Thursday he is seeing signs of the United States re-entering a "housing bubble," and warned about the U.S. central bank's ongoing purchases of mortgage-based bonds.

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"I'm beginning to see signs not just in my district but across the country that we are entering once again a housing bubble," Dallas Fed President Richard Fisher told reporters. "So that leads me ... to be very cautious about our mortgage-backed securities purchase program."