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Chair Powell Concludes July Press Conference

FED
  • Q: Have you seen signs that banks are being more proactive in being ready to use the discount window?
    • A: Yes, banks are now working to see they are ready to use the discount window. And we are strongly encouraging them to do that. We did find in March that it's a little clunky. So why not be in a situation where you're just much more ready in case you need to access the discount window.
  • Q: Are we getting closer into balance in the housing market or further away?
    • A: I think we've got a ways to go to get back to balance. With existing homes, many people have low rate mortgages, and whereas they might want to sell in a normal situation, they're not going to, which means that supply of existing homes is really, really tight, which is keeping prices up. On the other hand there's a lot of supply coming online now. And there are people coming in, with these relatively elevated mortgage rates. But I think this will take too time to work through. Hopefully more supply comes online and we work through it.
  • Last Q: Will the breakdown of the Russia-Ukraine grain deal impact Fed policy?
    • A: We're watching it very closely. Grain prices did go up but remain well below the peaks of last spring. The moves we've seen so far are not expected to make a significant contribution to US inflation.

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