This topic mainly tracks the speech of Fed officials on monetary policy, hoping to reveal the focus and possible changes of the Fed's monetary policy through relevant content
In this speech, fed director Waller made a speech at the Forum on "the impact of recent policies on real estate in the United States and Israel" on March 24, mainly talking about the impact of fed policies on the real estate market, especially on housing purchase and loan repayment.
Housing service expenditure accounts for about 15% of CPI, so it is an important factor affecting inflation. Since the epidemic, the US real estate market has been hot, and the actual rent price is much higher than the increase of CPI statistics.
The rise in rent has a huge impact on low-income families, as rent accounts for 41% of their disposable income, much higher than 28% of high-income groups. A high proportion means a reduction in other expenditures.
In the context of rising real estate prices, demand remains strong, exceeding previous estimates. Blockade and telecommuting have increased people's demand for houses with more space.
The fiscal policy also supported the real estate market, especially the relief during the epidemic, which enabled a large number of borrowers to postpone the repayment of loans and keep their houses and funds.
The Fed continues to focus on the healthy development of the real estate market, which is different from the 08 year bubble and crash. The private sector and banks have a healthier and more powerful balance sheet. The factors driving up real estate prices and rents may ease next year. However, the proportion of real estate in inflation will become larger and larger in the future.
