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Powell: restoring price stability best long‑term route to fix housing; rates mainly affect demand
Summary
Chair Powell told the committee the Fed sees high interest rates as damping housing demand but said monetary policy is not the tool to fix long‑run housing supply; restoring price stability is the most effective route to lower mortgage costs over time.
Several members used the hearing to press the Federal Reserve on the relationship between high interest rates and the U.S. housing shortage. Chair Jerome Powell told lawmakers the Fed’s policy primarily affects housing demand in the short run and that restoring price stability is the best way to bring down financing costs in the medium term.
Powell told Representative Rashida Tlaib and others that higher interest…
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