Source: Fortune —
Fed Chair Jerome Powell told reporters back in June that spiking mortgage rates would see the Pandemic Housing Boom fizzle out. In the eyes of Powell, that would be a good thing.
“I’d say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again,” Powell told reporters at the time.
In the months since, economists have openly questioned what Powell meant by a housing “reset.” Does the Fed simply want buyers to back off long enough to allow inventory to rise? Or does “reset” mean the Fed also wants home prices—which spiked 43% in just over two years—to come down?
On Thursday, CNN business reporter Nicole Goodkind asked Powell to clarify what the housing “reset” means. Here’s his long-winded response.
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