Statement of David M. Dworkin, President and CEO of the National Housing Conference on FOMC announcement
Today’s announcement by the Federal Reserve Board’s Federal Open Market Committee to increase interest rates by an additional 75 basis points will drive up the cost of housing and may fail to adequately reduce inflation. Housing supply deficits, made worse by increased interest rates, are likely to blunt the anti-inflationary impact of the Fed’s rate hike as the housing supply continues to shrink, offsetting the impact of interest rate-driven reductions in demand.