Jerome Powell Pressed On Why Fed Isn’t Lowering Rates To Help Americans Afford Homes

Several journalists interviewed the president of the Federal Reserve Jerome Powell at a press conference on Wednesday on the decision to maintain stable interest rates.

The Fed announced that interest rates would remain stable, despite the growth of the second quarter of 3% and the lobbying of President Donald Trump. Journalists from the Wall Street Journal and Fox Business Network asked Powell why he did not drop interest rates, the journalist of Fox Business Ed Lawrence underlined the effects on potential buyers. (Related: Rick Santelli from CNBC boasts GDP figures better than expected under Trump)

“How do you justify someone looking for a house, faced with a mortgage of 7%, and perhaps cannot afford these prices?” Lawrence asked Powell. “How do you justify this?”

WATCH:

“Housing is a special case, right?” We do not set mortgage rates at the Fed. We have set a night rate. The rates that go into mortgages are longer -term rates, such as cash rates, can be rates of 30 years … Something that we have no effect, we have an effect but not we are not the main effect, “said Powell. “There are other things in the housing sector and one of them is a long -term housing shortage that we have. We have not built enough housing, this is not something that the Fed can help, and this will be the case after things are normalizing. So, I think the best thing we can do for housing is to have 2% of inflation and maximum employment and this is what we can contribute to housing. ”

Trump and Powell would have faced the Fed’s failure to reduce interest rates, Trump overcoming Powell “too late” on the refusal of the president of the Fed to reduce rates.

Two members of the Federal Open Market Committee (FOMC), fed the governors Michelle Bowman and Christopher Waller, dissident of maintaining stable rates, pleading for the equivalent of a drop of 0.25% in the first double dissent since 1993, Fox Business reported. Bowman and Waller are listed as potential replacements for Powell in an article on June 30 by The Hill.

The chief correspondent of Lawrence and Wall Street Journal, Nick Tiiraos, also questioned Powell on the prices imposed by Trump earlier in the year. (Related: Jerome Powell, from Hard Hat, visibly shakes the head on Trump during the visit to the construction of Fed)

“What have learned in recent months on the process of generation of inflation and price passage and just to explore, the June report on the ICC has shown evidence of the inflation of goods induced by prices. Now, the tariff landscape has only just been started to be announced with some of these more recent agreements. broader inflation process? Asked Timiraos.

“I think you have to consider this as being quite early and therefore I think what we see now are substantial amounts of income priced has replied.

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