"Possible Speculative Excess": FOMC
Disregarding the so-called 'soft patch' in the economy, the Federal Reserve is signaling that the funds rate will be increased. "'Most members regarded the recent slower growth of economic activity as likely to be transitory,' according to the minutes released today in Washington."
"'All members regarded the stance of policy as accommodative and judged that the current level of short-term rates remained too low to be consistent with sustainable growth and stable prices in the long run.'"
"'Home sales and other indicators of activity in the residential real estate market remained at very high levels,' the minutes said. 'House price appreciation was expected to moderate over coming quarters, but a number of local markets were still regarded as `hot' with signs of possible speculative excess.'"