Jerome Powell says the Fed can cut rates but it can’t fix the housing crisis

Published On Sep 19, 2024, 4:14 PM

Federal Reserve Chair Jerome Powell stated that while the Fed can lower interest rates, it cannot resolve the ongoing housing crisis caused by insufficient housing supply. After the Fed's first rate cut in four years, the impact on mortgage rates has been mixed, with minor fluctuations. Powell emphasized that the real challenge lies in the lack of homes available, which won't be significantly affected by rate cuts. He suggested that a normalization of interest rates could help stabilize the housing market, but the fundamental issue of low housing supply remains.