Fed Chair Powell: High rates have burdened the housing industry

Group 1 - The current high interest rates are exacerbating housing affordability issues, potentially hindering household formation and wealth accumulation for certain population segments [1] - The housing sector is significantly influenced by monetary policy, with low rates during the pandemic providing crucial support to housing companies [2][3] - Lower borrowing rates for builders are expected to help increase supply, but substantial changes in rates are needed for a significant impact on the housing sector [3] Group 2 - There is a nationwide housing shortage that is not cyclical and cannot be addressed solely by Federal Reserve policies [4] - Forecasting in the current economic climate is particularly challenging, with forecasters expressing uncertainty about their projections [5]