Several correspondents, Federal Reserve Chairman Jerome Powell, interrogated a press conference on Wednesday regarding the decision to maintain constant interest rates.
The Federal Reserve announced that interest rates will remain fixed, despite the growth of GDP in the second quarter by 3 % and pressure from President Donald Trump. Representatives asked the Wall Street Journal and the Powell Business Network about the reason why he did not reduce interest rates, as Fox’s business correspondent Ed Lawrence indicated the effects on potential homes buyers. (Related: Rick Santelli from CNBC tops GDP numbers “Better than expected” under Trump)
“How do you justify someone looking for a house, facing 7 % mortgage, and you may not have the costs of these prices?” Lawrence Powell asked. “How do you justify that?”
He watches:
“Housing is a special case, right? We do not put mortgage rates in the Federal Reserve. We have put average overnight. The rates that enter real estate mortgages may be long -term rates, such as treasury rates, may be 30 years … something we have no effect, we have succeeded in influencing but we are not the main effect.” “There are other things that occur in the housing sector, one of which is a lack of long -term housing.
According to Trump and Powell, the Federal Reserve’s failure to reduce interest rates, with Trump Powell, “is too late” due to the Federal Reserve Chairman’s refusal to reduce prices.
Two of the Federal Open Market Committee (FOMC), Conservatives at the Federal Reserve Bank, Michelle Bowman, Christopher Waller, opposed, from maintaining fixed rates I mentioned. Both and Waller are included as possible alternatives to Powell on June 30 condition Next to the hill.
Lawrence Wall Street Journal, chief economist Nick Timiraus, as well interrogation Powell about the definitions of Trump earlier in the year. (Related: Solid arrest, Jerome Powell clearly rises his head in Trump during the Federal Reserve Building round)
“What I learned during the past few months about the process of generating inflation and the passage of prices and just for the transition, the CPI report in June showed evidence of enlarged goods caused by customs tariffs. Now, the scene of the natural tariff began only in evaluation in some of these deals. The influence on the wider inflation process?” Timiraus asked.
“I think you have to think about this that it is still very early days, so I think what we see now is large amounts of customs tariff revenues that are collected, separately 30 billion per month, and it is much higher than before, and it seems that the evidence is what is often not paid, but it does not pay to a large extent through this amount, they do not pay to a large extent of this consumption.
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