How Far Will Housing Correction Go?

A "substantial correction" was taking place in the housing market. Bernanke estimated the housing slowdown would trim about 1 % point off economic growth in the second half of this year

The housing cooldown, after a 5-year boom, holds important implications for consumer spending and overall economic activity. "How far will this correction go? It is very difficult to tell, is the honest answer," Bernanke said.

The Federal Reserve‘s next meeting is scheduled for Oct. 24-25. Many economists believe the policymakers will leave rates unchanged for the third meeting in a row.