Powell sees housing inflation coming down sharply over next 18 months

Fed Chairman Jerome Powell on Wednesday said conditions are in place for inflation to come down in the housing sector. “We think housing inflation will be coming down significantly over the course of the rest of this year and next year,” Powell said in testimony to the House Financial Services Committee. Consumer inflation has eased since last summer due mainly to falling energy and core good prices. In contrast, rents and other housing inflation has been moving higher.