Powell Remains Confident On Housing Inflation

A few other notes from Powell's Q&A with the House Financial Services Committee:

• On shelter prices: Powell reiterates that the Fed expects shelter price inflation to come down, characterizing the housing market as coming closer into balance: "housing inflation is set to come down significantly as we move forward...later this year and into next year". Powell has sounded more confident than some others on the Board of Governors (ie Bowman, Waller) on shelter prices slowing - a key component of achieving disinflation.
• On policy lags and the strength of the US dollar: Powell says there's a lot of uncertainty about how long it takes monetary policy to affect real activity... the Treasury has responsibility for stewardship of the dollar, "we don't comment on that".
• On the labor market: Powell says the softening in the job market has been around job openings declining, not around unemployment increasing. Have seen some wages moderating back toward more sustainable levels (last week he said "I think we've seen some progress on all of the major measures of wages have moved down from ... highly elevated levels a year or so ago, and they're moving back down, but quite gradually."