Bernanke calls for help from Congress to revive housing market

Federal Reserve Chairman Ben Bernanke recently called on Congress and the Obama administration to develop new programs and initiatives to aid the housing market.

The Federal Reserve began purchasing $1.25 trillion in mortgage bonds in January 2009. Since then, the U.S. housing market has depreciated 4.1 percent and is down 32 percent since its peak in 2006, illustrating a need for stronger aid and stimulus to boost the recovery efforts. In 2012, the central bank plans to purchase another $200 billion in bonds, or 20 percent of new loans, Wall Street Cheat Sheet reported.

Bernanke and Fed officials are willing to expand their loan purchases, but also realize a need for other governmental bodies to help aid their efforts, particularly Congress. Bernanke told Congress that broader recovery of the U.S. economy cannot happen until the housing market is improved, as it accounts for 15 percent of the economy, the source reported.

According to Bloomberg, Bernanke believes one way to help the housing market will include short-terms costs for taxpayers. If the government were to expand the role of Fannie Mae and Freddie Mac, taxpayers will have to pay more for this initiative. But if the efforts incite a housing market recovery, it will reduce costs on taxpayers in the long-term.

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