Fed’s Rosengren: Sharp rise in US apartment prices may signal financial instabilities

Reuters reporting headlines from the Boston Fed president Eric Rosengren, as he addresses a multi-day conference on Banking Supervision in Indonesia.

Key Points:

Hot US commercial real estate sector could amplify potential economic downturn

Difficult to slow real estate price rises with interest rates

Regulators should consider better alternative tools to protect economy from real estate run-up

Sharp rise in US apartment prices may signal financial instabilities

Global regulators may need to act if low rates, 'reach for yield' lead to financial problems