Warren urges Powell to cut rates to help ease housing costs

Senator Elizabeth Warren and three Democrats are urging Federal Reserve Chairman Jerome Powell to lower interest rates ahead of this week’s central bank policy meeting to help colleagues lower housing costs.

“High interest rates exacerbate the country’s ongoing housing access and affordability crisis,” the senators wrote in a statement. letter The date is January 28th. “As the Federal Reserve weighs its next steps in the new year, we urge you to consider the impact of interest rate decisions on the housing market and reverse troubling rate hikes that have put affordable housing out of reach. And. Too many.”

Warren, a Democrat from Massachusetts, has frequently criticized the Fed’s movement to raise rates, as have John Hickenlooper of Colorado, Jackie Rosen of Nevada and Sheldon White of Rhode Island. House also joined Warren. The letter was first reported by CNN.

In the past two years, the Federal Reserve has raised interest rates to 5.25% to 5.5%, a 22-year high, to curb rapid inflation. The policy caused effective 30-year mortgage rates to rise above 8% last year, although they have since fallen back from their peak.

Warren and her colleagues argue that higher mortgage rates are exacerbating the housing supply crisis, and higher rates are also putting upward pressure on rental costs.

The Fed slowed its pace of raising interest rates last year and has not raised rates since July. Powell and his colleagues have signaled that the next move could be a rate cut, which markets expect could come as early as the spring. Federal Reserve officials said they forecast three interest rate cuts this year, released in December.

Policymakers are expected to keep interest rates on hold when they meet this week.

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