Powell speech: No financial stability concerns from housing market

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged within the target range of 0-0.25%, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his comments on the policy outlook.

Key quotes

"We are watching housing prices carefully; rise is because of low inventory, strong demand."

"Clearly strongest housing market since the financial crisis."

"Not an unalloyed good to have housing prices go up this much."

"We don't see financial stability concerns from the housing market."

"Unclear if those now identifying as retired will come back in."

"We don't see wages moving up, would see that in a tight labor market."

"Expecting people to return to labor force to fill jobs, maybe pay will go up."

"May take some months to get back to equilibrium between labor supply and demand."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.