By Benjamin Goad - 04/25/13 11:01 PM EDT
Still, during a meeting at which the council’s 10 members voted unanimously to approve the 195-page report, Lew said much work remains to attract private capital to the housing finance system to aid the housing markets fragile recovery.
At the same time, he said regulatory action would be required to strengthen markets “that may be susceptible to destabilizing runs and fire sales.”
The report comes in the wake of this week’s hacking of The Associated Press’ Twitter feed, which was used to falsely report explosions at the White House, prompting a temporary but dramatic dive in the financial markets. Such unforeseen events are likely to crop up in the coming year, Lew said.
“We need to increase our vigilance to operational risks, whether from cyber attacks or from devastating acts of nature like we saw with Superstorm Sandy,” Lew said.
The members also pointed to the nation’s burgeoning student loan debt, saying it could lessen demand for housing and dampen consumption.
“Large and growing student debt burdens and a poor job market have pushed many borrowers into delinquency, especially among younger borrowers,” the report finds.