"They [FOMC members] are closer to doing QE3 than I would have guessed"
- John Silvia, chief economist at Wells Fargo Securities LLC
U.S. existing home sales rose in July helped by record low mortgage rates. Sales of previously owned houses jumped to an annual rate of 4.47 million from 4.37 million in June, said the National Association of Realtors.
"The housing sector has turned a corner, and demand will continue to improve," said Michelle Girard, an economist at RBS in Stamford, Connecticut. "The data also underscores the fact that improvement will be gradual."
Also Wednesday, Federal Open Market Committee minutes showed the Fed is ready to act should the economy deteriorate. Some members of the FOMC said action may be needed "fairly soon" without evidence of "substantial and sustainable" improvement in the recovery.
"They're closer to doing QE3 than I would have guessed," said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina.
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