As the Federal Reserve delivered what it hopes will be a knockout blow to inflation—another 75 bps rate increase, with more on the way—Fed chief Jerome Powell went out of his way to finger housing prices as a prime culprit for the stubbornly high US inflation rate.
At a Wednesday press conference announcing the latest rate hike, the Fed chair for the first time conceded that the US can't tame inflation without a recession—and he specifically called for "a correction" in US housing markets where he said home prices have spiraled to record heights at "an unsustainably fast level."
"We've had a time of a red-hot housing market all over the country. The deceleration in housing prices that we're seeing should help bring prices more in line with rents and other housing-market fundamentals, and that's a good thing," Powell said.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
