Fed Chair Powell: Interest-sensitive spending like housing is most affected when we raise rates
I want to first align myself with the remarks from Chairman Menendez supporting a Latino nominee to the Open Seat on the Federal Reserve. It's been more than 100 years and a Latino has never served on the Federal Reserve Board and I know there are many strong Latino economists and economic experts who would capable serve so I want to put that out there. Chairman Powell, I am I also sit on I want to first align myself with the remarks from Chairman Menendez supporting a Latino nominee to the Open Seat on the Federal Reserve. It's been more than 100 years and a Latino has never served on the Federal Reserve Board and I know there are many strong Latino economists and economic experts who would capable serve so I want to put that out there. Chairman Powell, I am I also sit on finance right across the way we are talking about affordable housing and I think for purposes of so many of us across the country including in Nevada when we talk about affordable housing it's also about workforce housing it's about making sure families that are working so hard have an opportunity to keep a roof over the head. Right now in Nevada if you're making minimum wage you have to work 75 hours a week just to be able to afford housing and so I want to talk to you about this. finance right across the way we are talking about affordable housing and I think for purposes of so many of us across the country including in Nevada when we talk about affordable housing it's also about workforce housing it's about making sure families that are working so hard have an opportunity to keep a roof over the head.
Right now in Nevada if you're making minimum wage you have to work 75 hours a week just to be able to afford housing and so I want to talk to you about this. I was distressed to see in the report that that activity in the housing sector has contracted as a result of the elevated mortgage rate and you've been talking about that. I often hear from Nevadans who say I don't know if I'm ever going to own a home and many feel resigned being stuck in a cycle of renting so chairman how do the federal reserve economists and leaders think about the balance I was distressed to see in the report that that activity in the housing sector has contracted as a result of the elevated mortgage rate and you've been talking about that. I often hear from Nevadans who say I don't know if I'm ever going to own a home and many feel resigned being stuck in a cycle of renting so chairman how do the federal reserve economists and leaders think about the balance between keeping interest rates low to spur that affordable home building and home buying while addressing inflation. We have a dual mandate from Congress as you as you well know which is maximum employment and price stability and that's really what we take into account. We don't and of course intracensitve spending is the thing that gets the most support when we cut rates and the thing between keeping interest rates low to spur that affordable home building and home buying while addressing inflation. We have a dual mandate from Congress as you as you well know which is maximum employment and price stability and that's really what we take into account.
We don't and of course intracensitve spending is the thing that gets the most support when we cut rates and the thing that is most affected when we raise rates and that that means housing to a significant extent. That's not a choice that we make that's just the way it works and we only have really one tool which is monetary policy so you know we don't we don't really try to use our tools to affect broader housing policy but really just to achieve our statutory goals. that is most affected when we raise rates and that that means housing to a significant extent. That's not a choice that we make that's just the way it works and we only have really one tool which is monetary policy so you know we don't we don't really try to use our tools to affect broader housing policy but really just to achieve our statutory goals.
Squawk on the Street, CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, stock market news, stocks