{"id":56619,"date":"2021-02-03T10:30:55","date_gmt":"2021-02-03T15:30:55","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56619"},"modified":"2021-02-03T10:30:55","modified_gmt":"2021-02-03T15:30:55","slug":"the-feds-monetary-punchbowl-is-fueling-rampant-home-price-appreciation-aei","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56619","title":{"rendered":"\u201cThe Fed\u2019s Monetary Punchbowl Is Fueling Rampant Home Price Appreciation\u201d: AEI"},"content":{"rendered":"
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\u201cThe Fed\u2019s Monetary Punchbowl Is Fueling Rampant Home Price Appreciation\u201d: AEI<\/a><\/h3>\n<\/header>\n
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\u201cThere is no justification\u201d for continuing the purchases of mortgage-backed securities. The Fed is \u201cmisdiagnosing its impact on the housing market.\u201d Pressure rises on the Fed to back off, in face of market craziness.<\/strong><\/p>\n

During the press conference following the FOMC meeting last week, Fed Chair Jerome Powell was asked by different reporters about the craziness going on in the stock market, the chaotic thingy with GameStop, corporate debt, and the housing market.<\/p>\n

The fact that he was asked several times about the exuberant nuttiness in asset prices shows that by now everyone has picked up on it. And people are increasingly incredulous that the Fed would continue with its monetary policies in face of these markets.<\/p>\n

Powell brushed off the GameStop thingy and gave his usual it\u2019s-not-our-fault and it\u2019s-never-ever-our-fault justifications for the exuberant nuttiness in the markets. The near-0% interest rates and $3 trillion in QE in just a few months had nothing to do with anything, but the drivers of the nuttiness have been the \u201cexpectations about vaccines\u201d and \u201cfiscal policy,\u201d he said (transcript<\/a>). \u201cThose are the news items that have been driving asset values in recent months.\u201d<\/p>\n

Upon hearing this, people globally were just rolling up their eyes. And a reporter challenged him softly about the housing market \u2013 the 9% surge in prices from already lofty levels. \u201cAre you concerned about a bubble forming there yet? And is there a price increase that you\u2019re looking at where it might change the level of mortgage-backed securities the Fed is buying?\u201d<\/p>\n

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\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cThe Fed\u2019s Monetary Punchbowl Is Fueling Rampant Home Price Appreciation\u201d: AEI \u201cThere is no justification\u201d for continuing the purchases of mortgage-backed securities. The Fed is \u201cmisdiagnosing its impact on the housing market.\u201d Pressure rises on the Fed to back off, in face of market craziness. During the press conference following the FOMC meeting last week, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7783,303,30900,426,538,7926,3650,4254,4255],"class_list":["post-56619","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-expansion","tag-fed","tag-home-price-inflation","tag-inflation","tag-money-printing","tag-mortgage-backed-securities","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56619"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56619\/revisions"}],"predecessor-version":[{"id":56620,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56619\/revisions\/56620"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}