UPDATE 1-Fed's Fisher says rebounding U.S. housing not in bubble yet

Wed Jun 5, 2013 1:46pm EDT
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TORONTO, June 5 (Reuters) - The rebounding U.S. housing market has not yet entered bubble territory, but has corrected enormously, Richard Fisher, president of the Dallas Federal Reserve Bank, said on Wednesday.

"I don't think it's a bubble yet but it has corrected enormously so my personal view would be to slow the rate of acceleration (of bond buying)," he said in an interview with Canada's BNN television.

The central bank official, who has advocated that the Federal Reserve scale back its quantitative easing program, also said financial markets have begun to discount this possibility.

Market participants have been closely watching the comments of Federal Reserve officials as signs of stronger U.S. economic growth have raised the prospect the Fed's hefty U.S. monetary stimulus program could be curtailed in coming months.

Fisher, a longtime critic of the Fed's current bond-buying program, said in a speech in Toronto on Tuesday evening that the U.S. central bank is poised to evaluate and potentially make changes to the stimulus program.