Fed Vice Chairman Kohn: "More Resilent Financial System Is Going To Take Awhile"

In a speech in Washington D.C. at the Brookings Panel on Economic Activity, federal Reserve Vice Chairman Donald L. Kohn warned, "that restraint on credit supplies is likely to persist because intermediaries have some way to go to rebuild their balance sheets. The process of adjustment to a safer, more resilient financial system is going to take a while."

He also stated that he encouraged that the pace of declines in housing prices abating in a number of markets. However, partly owing to the feedback of price declines on lenders, mortgage conditions have tightened some since the late spring, and the jury is still out on whether housing prices are close to finding a bottom.

-EPJ Frontdesk