The housing market in the United States right now is extremely expensive. In order for the “regular folks” to afford homes again, the Fed’s chairman, Jerome Powell, believes that the US will need a “difficult correction.”

“For the longer term what we need is supply and demand to get better aligned, so that housing prices go up at a reasonable level, at a reasonable pace, and that people can afford houses again,” Powell said on Wednesday.

“We probably in the housing market have to go through a correction to get back to that place.”

“From a sort of business cycle standpoint, this difficult correction should put the housing market back into better balance.”

“I’d say if you are a homebuyer or a young person looking to buy a home, you need a bit of a reset.”

“We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again,” Powell told reporters.

“When I say reset, I’m not looking at a particular specific set of data.”

“What I’m really saying is that we’ve had a time of a red-hot housing market all over the country, where famously houses were selling to the first buyer at 10% above the ask even before seeing the house. That kind of thing.”

We know what you’re talking about, Mr. Powell. 😉

Words can be very powerful.

“This is a good thing,” says Powell.

“So there was a big imbalance between supply and demand. Houses were going up at an unsustainable fast level. So the deceleration in housing prices that we’re seeing should help to bring prices more closely in line with rents and other housing market fundamentals. That is a good thing.”

“There are also longer-run issues with the housing market. As you know, it is difficult to find lots now close enough to cities, so builders are having a hard time getting zoning and lots and workers and materials and things like that.”

“But from a business cycle standpoint, this difficult [housing] correction should put the housing market back into better balance,” Powell said.

Powell said the Fed’s top goal is to bring down high inflation.

“We can’t fail to do that,” said Powell.

“I think there’s a very high likelihood we will have a period of … much lower growth and it could give rise to an increase in unemployment. No one knows whether that process will lead to a recession or how significant a recession it will be,” Powell said. “I don’t know the odds.”

On Wednesday, the Federal Reserve raised its benchmark interest rates by 0.75 basis points. This is the third hike in a row, and it’s not planned to drop anytime soon.

Higher interest rates mean bigger mortgage payments, but supposedly the steep interest rates are to bring down inflation.

If only we didn’t have this problem in the first place, which could have very well been prevented. Some might even speculate that it was done intentionally to destroy the US economy and make citizens more dependent on their governments for survival.

This is just the beginning he says…

pic.twitter.com/tnSDMAFgYI

— Patrick Bet-David (@patrickbetdavid) September 21, 2022

President Biden printed 40% of all the U.S. dollars ever in circulation.

It’s going to take more than a “difficult correction” to repair such damage.

Sen. John Kennedy (R-La.) reflected on America’s major inflation problem back in June.

“I know many of you feel like the government has let you down and that government doesn’t care about you or about your future, or your kids’ future, and I feel the same way sometimes.”

“People are having to dig into their savings. A dozen eggs just jumped from $1.62 to $2.52. A single pound of ground beef was $4.66 a year ago. Now it’s $5.41. Chicken is up more than $4 a pound.

“Food banks in our state are even having to cut back. They’re having trouble stocking their shelves to feed our people.”

“Used cars and trucks are up 23%. You can’t afford to put gas in your car or truck even if you can buy one, and we’re seeing just record prices every day.

“This inflation, there’s nothing magical about its cause. The federal government just printed too much money. I mean, the last bill that President Biden passed—he just put us over the top: It was $2 trillion dollars. $2 trillion dollars! That’s 2,000 billion dollars.

“And they said it was a COVID bill, but it wasn’t. It was really an expansion of our already generous welfare program. . . . And a lot of the money was wasted.”

“They built a $28.5 million apartment complex in Seattle, Washington for the homeless, with views of the Space Needle in Washington.”

“In Rhode Island, they spent $53,000 remodeling a city hall and buying ergonomic chairs.”

“In New York, they used $12 million to expand a minor league baseball stadium.”

“In Arizona, they spent $7.2 million to increase the prize money at horse racing tracks.”

“We can get this inflation under control, but we’ve got to do two things: Number one, we’ve got to stop spending money we don’t have, and we’ve got to stop printing it. We’ve got to do what you do every day and live within your budget.

“And number two, the president has just got to get his boot off the throat of the oil and gas industry. Oil and gas prices are not going to come down as long as we’re having to buy oil from foreign countries at these inflated prices. Oil and gasoline are not going to come down until we go back to producing our own. It’s just that simple. And we can get there if the Biden administration will stop its war on the oil and gas community.”