{"id":592664,"date":"2021-07-15T17:51:41","date_gmt":"2021-07-15T21:51:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=592664"},"modified":"2021-07-15T17:51:46","modified_gmt":"2021-07-15T21:51:46","slug":"watch-powell-admits-that-fed-policies-are-behind-high-home-prices","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-powell-admits-that-fed-policies-are-behind-high-home-prices\/","title":{"rendered":"WATCH: Powell Admits That Fed Policies Are Behind High Home Prices"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwatch-powell-admits-that-fed-policies-are-behind-high-home-prices%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=592664&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/GettyImages-1233995402-scaled-1.jpg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>During testimony before Congress on Thursday, lawmakers expressed concern to Federal Reserve Chair Jerome Powell that the central bank\u2019s policies are decreasing Americans\u2019 access to affordable housing.<\/span><\/p>\n<p><span>In his prepared <\/span><a href=\"https:\/\/www.dailywire.com\/news\/after-another-record-inflation-report-the-fed-will-not-taper-monetary-policy\"><span>remarks<\/span><\/a><span>, Powell said that inflation \u201chas increased notably and will likely remain elevated in coming months before moderating.\u201d However, Powell said that such inflation is temporary \u2014 and he did not reveal any intention to scale back the Fed\u2019s $120 billion monthly bond purchases, which increase the supply of dollars in the interest of stimulating the economy.&nbsp;<\/span><\/p>\n<p><span>Sen. Pat Toomey (R-PA) questioned Powell on the Fed\u2019s policy to buy a monthly $40 billion in mortgage-backed securities \u2014 which represents one-third of the $120 billion stimulus package.<\/span><\/p>\n<p>\n<iframe loading=\"lazy\" title=\"Fed Chair Jerome Powell: Undecided on need for central bank digital currency\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/3HrEfwIWlBw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<p><span>\u201cHousing prices across the U.S. as a whole increased in May by more than 15% from the previous year,\u201d said Toomey. \u201c15% clearly is making housing less affordable, more out-of-reach for more people.\u201d<\/span><\/p>\n<p><span>Toomey noted that leaders within the Federal Reserve Banks of St. Louis, Dallas, and Boston are worried that mortgage-backed security buyouts \u201cmay be contributing to the current boom in real estate prices.\u201d<\/span><\/p>\n<p><span>\u201cAre you at all concerned about the unintended consequences that are associated with $40 billion worth of mortgage-backed security purchases that continue month after month?\u201d asked Toomey.<\/span><\/p>\n<p><span>\u201cHousing prices are going up, as you mentioned, around 15%. This is a very high rate of increase,\u201d said Powell. \u201cA number of factors are contributing \u2014 monetary policy is certainly one of those factors. There are also other factors: people have very strong balance sheets, so they\u2019re able to make down payments. There are also supply factors that are constraining the supply, at least temporarily.\u201d<\/span><\/p>\n<p><span>Powell said that mortgage purchases are \u201csomewhat more supportive of housing\u201d than other asset purchases \u2014 although that is \u201cnot their intent.\u201d<\/span><\/p>\n<p><span>\u201cReally, the larger point is that monetary policy is supporting this,\u201d he continued. \u201cThat\u2019s a discussion we\u2019re going to be having on an ongoing basis.\u201d<\/span><\/p>\n<p><span>As Powell and Toomey acknowledged, housing costs are presenting difficulties to Americans who want to purchase a home.<\/span><\/p>\n<p><span>One recent Zillow <\/span><a href=\"https:\/\/www.dailywire.com\/news\/report-average-home-is-staying-on-the-market-for-only-6-days\"><span>report<\/span><\/a><span> found that the typical American home is remaining on the market for only six days. In some cities \u2014 such as Cincinnati and Columbus \u2014 time on the market can be as low as three days. Homeowners, therefore,&nbsp;<\/span><a href=\"https:\/\/www.cnn.com\/2021\/06\/10\/homes\/home-equity-growth-feseries\/index.html\"><span>saw<\/span><\/a><span> an equity gain of $2 trillion between the first quarter of 2020 and 2021.<\/span><\/p>\n<p><a href=\"https:\/\/www.dailywire.com\/news\/how-the-government-is-distorting-the-housing-market\"><span>The Daily Wire<\/span><\/a><span> previously explained that the Fed\u2019s aggressive quantitative easing is leading to high real estate prices. Beyond the purchase of mortgage securities, the Fed\u2019s near-zero goal for the federal funds rate \u2014 the interest rate at which private banks can borrow from one another overnight \u2014 causes other interest rates in the economy to drop.<\/span><\/p>\n<p><span>At least in part due to quantitative easing, it is less costly for American homebuyers to take out a mortgage and buy a house, leading to a greater demand for real estate. With more demand, prices rise.<\/span><\/p>\n<p><span>Despite the better-than-expected American economic recovery, the Fed currently has no concrete plans to roll back its monetary stimulus.&nbsp;<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>During testimony before Congress on Thursday, lawmakers expressed concern to Federal Reserve Chair Jerome Powell that the central bank\u2019s policies are decreasing Americans\u2019 access to affordable housing.In his prepared remarks, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-592664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/592664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=592664"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/592664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=592664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=592664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=592664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}