In Canada, which was hit with an income shock after the downturn in prices of oil and other commodities, low rates have resulted in an extended period of loose money that has fueled a housing boom in pockets of the country.
.. even though inflation—at an annualized 1.3% rate in May—remains well below the central bank’s 2% target, and wage growth remains stubbornly low.
.. TD Securities, said it believed the central bank would hold off until October, arguing a rate rise now could hurt the Bank of Canada’s reputation as an inflation-targeting bank.
.. Six of the dealers surveyed added they expect Canada’s benchmark interest rate to hit 1% by the fall.
“Inflation isn’t pressing, but the economy is showing that it can easily live with interest rates a bit higher than they are at present and still generate solid growth,” said Avery Shenfeld, chief economist at CIBC World Markets.
.. Mr. Poloz said rate cuts delivered in 2015 have worked in helping the economy adjust to the income shock from lower energy prices, and that spare labor and production capacity in the economy was being “steadily” absorbed.
.. Mr. Shenfeld said one factor that may be driving the Bank of Canada is more concern about financial stability than it is letting on, highlighted by record levels of household debt and worries about a housing crash in Toronto and Vancouver.
“Why encourage excesses of debt?” he said. “We’ll trade off a bit of a delay in getting to 2% inflation if that gives sufficient benefits in financial stability.”
Trump Family Wedding Planner to Head New York’s Federal Housing Office
A longtime associate of President Trump’s family, who organized golf tournaments on the president’s courses and planned his son Eric’s wedding, will soon oversee billions of federal dollars as the head of the Department of Housing and Urban Development’s New York and New Jersey office.
Lynne Patton had been working as a senior adviser and director of public engagement at HUD for several months before Ben Carson, the department secretary, recommended her for the new role
.. The appointment of a Trump family loyalist to a key government post fits a pattern. His daughter Ivanka and son-in-law, Jared Kushner, work in White House offices. Dan Scavino Jr., who was the president’s caddie, is the director of social media. His longtime bodyguard, Keith Schiller, has become such an important White House figure that he hand-delivered the dismissal papers to James Comey, the former F.B.I. director.
.. Ms. Patton had earned the trust of Mr. Carson after organizing his listening tour in several cities.
.. “Dr. Carson calls her, ‘the general’ because she can lead an army. She’s that tough,” Mr. Williams said.
.. “If Donald Trump is intent on showing the contempt he has for the social safety net, then the appointment makes sense.”
.. Mr. Torres, who grew up in public housing, said Ms. Leicht had been a “strong advocate for affordable housing in New York City,” and acted as a liaison between local officials and the federal housing department.
.. Morale among some career officials at the city’s local office of the federal housing department has been low because of proposed cuts to the agency’s budget.
Why Millennials Are (Partly) to Blame for the Housing Shortage
As young people and builders have shifted their focus toward trendier urban markets, overall housing construction has declined
For decades during the late-20th century, suburbs were the place to build, as urban cores suffered from high crime, poor schools and stagnant or shrinking populations.But preferences have changed among young people, many of whom want to live closer to transit, restaurants and their workplaces... As builders have shifted focus toward trendier urban markets and away from cheaper suburbs, they have produced less housing overall than they otherwise might have. While starter-home construction has bounced back in recent months, it remains far from reversing this long-term trend.
.. The takeaway, Mr. Romem says, is that pricey cities need to loosen land-use restrictions in core areas where there is more demand. Allowing for more high-rise condo buildings would make it economical to produce starter homes in these areas as well.
“Do you care about preserving things the way they are, so that only wealthy people can continue buying in, or do you want to [encourage more density], so that housing is more affordable for everyone?” he asked.
A ‘Forgotten History’ Of How The U.S. Government Segregated America
Rothstein’s new book, The Color of Law, examines the local, state and federal housing policies that mandated segregation. He notes that the Federal Housing Administration, which was established in 1934, furthered the segregation efforts by refusing to insure mortgages in and near African-American neighborhoods — a policy known as “redlining.” At the same time, the FHA was subsidizing builders who were mass-producing entire subdivisions for whites — with the requirement that none of the homes be sold to African-Americans.