Sales of existing homes hit their highest level in more than three years in April.

The National Association of Realtors said on Wednesday that sales, which are completed transactions, increased 0.6 percent to a seasonally adjusted annual rate of 4.97 million, up from 4.94 million in March.

Sales hit their best clip since November 2009, when the market jumped to a 5.44 million pace because of a federal homebuyer tax credit.  

Resale activity is 9.7 percent above the 4.53 million level a year ago, but the pace would be closer to meeting demand if it weren't for low inventory and tight credit conditions, according to one economist. 

“The robust housing market recovery is occurring in spite of tight access to credit and limited inventory," said Lawrence Yun, NAR chief economist.

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"You don't want to lie before Congress!" Rep. Sean Duffy (R-Wis.) told Treasury Secretary Jack Lew in a House hearing. 

Shulman defended his hands-off approach to dealing with tax-exempt applications as members of both parties criticized him.

The Senate rejected a farm bill amendment that would have turned food stamps into a state block grant program.

Sen. James Inhofe (R-Okla.) introduced the amendment, which he said would have saved $300 billion over 10 years. The amendment failed on a 36-60 vote on Wednesday.

Only a fraction of the GAO's recommended cuts targeting duplicative programs have been carried out.

Rep. John Mica (R-Fla.) pressed Doug Shulman on his personal political affiliations and contributions in a contentious exchange. 

Federal Reserve Chairman Ben Bernanke warned Congress that the central bank's actions will be insufficient to stave off a drag on the economy caused by rising taxes and spending cuts. 

Bernanke told the Joint Economic Committee on Wednesday that a bevy of fiscal policy issues are creating headwinds and will "exert a substantial drag on the economy this year." 

The expiration of the payroll tax cut, other tax increases, budget caps on discretionary spending, billions in sequestration and the declines in defense spending will weigh on the economy, and the Fed won't be able to stop the effects. 

"Taking them all together, they have the effect of being a drag on economic growth, perhaps more than necessary," he said. 

"I know that some people will assume that I have done something wrong," she said. "I have not."

JPMorgan head honcho Jamie Dimon fends off bid to trim his power.

Washington probes tarnished Dimon's sterling reputation.

Fed official: Change in course could come in a few months.

Markets await testimony from Fed Chairman Bernanke.

Meet the new Xbox.