On Thursday, Fed Governor Christopher Waller told an audience at the “Recent Fiscal and Monetary Policy: Implications for U.S. and Israeli Real Estate Markets” conference that his home search in the Washington Metropolitan Area wasn’t going well because of low inventory and high prices.
“As we all know, a singular feature of the U.S. expansion since the COVID-19 recession has been the red-hot housing market.
“Trust me, I know it is red hot because I am trying to buy a house here in Washington and the market is crazy. Both house prices and rents are up significantly across the nation, while vacancy rates for rented and owner-occupied homes are down,” Waller said.
Waller is known to be a monetary policy “dove”, favoring expansionary policy and low interest rates. He has worked closely with the St. Louis Federal Reserve bank’s president, James B. Bullard, who was a vocal supporter of lower interest rates in 2019. Waller has argued that the Fed should not raise rates at that time (in 2019), when inflation was low and private savings were high.