"Powell and Yellen Address Challenges in Housing and Commercial Real Estate Markets"

Federal Reserve chair Jerome Powell testified that the housing market faces deep-rooted supply issues, with a shortage of 3.5 to 5.5 million housing units. While potential interest rate cuts have raised hopes for relief, Powell emphasized that the housing market's challenges go beyond monetary policy, including restrictive zoning laws and homeowners locked into low mortgage rates. The pandemic, high inflation, and labor shortages have exacerbated the situation, and while rate cuts may offer short-term relief, they won't solve the housing market's long-running supply problems. Powell faces the delicate task of balancing the housing market's impact on the economy with the need to control inflation.