Franklin Raines
Franklin Raines
Franklin Delano "Frank" Rainesis an American business executive. He is the former chairman and chief executive officer of the Federal National Mortgage Association, commonly known as Fannie Mae, who served as White House budget director under President Bill Clinton. His role leading Fannie Mae has come under scrutiny. He has been called one of the "25 People to Blame for the Financial Crisis" according to Time magazine...
NationalityAmerican
ProfessionBusinessman
Date of Birth14 January 1949
CountryUnited States of America
I think the Fed is going to raise interest rates over the rest of this year. I think it will go up at least 100 basis points before the year is out. So the Fed funds rate will rise from about 6 percent to at least 7 percent. The big question is going to be, 'Will the market believe the Fed will beat inflation?' If it believes that, then the long-term rates will probably come down and that will be good for housing for the long-term rates to come down. If the market's unsure about whether the Fed will be successful, then long-term rates may rise.
It creates a contrast between their ideas and ours. We are perfectly happy to be judged by that contrast.
Well, it's been great for new home purchasers, particularly first-time purchasers. I think this is a good time to be thinking about buying a home.
We are working on a wide variety of ways to bring to the mortgage finance system cost savings for consumers as well as lenders in the mortgage market,
We believe our overall fiscal policy is providing an environment where businesses can prosper, but we believe tax cuts should be aimed at people.
We're just sort of like the Eveready bunny. And we just keep going and we expect that to continue because of the strength of that housing market.
The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid.
And so the danger for the housing industry is if we see interest rates rise.
We think that it's unwise to put into the constitution a mechanism that enshrines for all time a particular way of measuring the budget.
Well, you know, we've got a lot of stimulus in the economy already from the tax cut, from the lowered interest rates, and also from the refinancing of mortgages.