ben s bernanke : challenges in housing and mortgage markets speech by mr ben s bernanke, chairman of the board of governors of the federal reserve system, at the operation hope global financial dignity summit, atlanta, georgia, 15 november 2012. * * * good afternoon. i ’ d like to thank john bryant and operation hope for inviting me to speak today. i ’ d also like to congratulate operation hope and the ebenezer baptist church on the grand opening of the hope financial dignity center, which holds the promise of becoming a tremendous resource for the people of atlanta and sits next to martin luther king ’ s home church. dr king ’ s legacy to our society is strong and enduring, and the new center is very much in the spirit of his work. the past few years have been difficult for many americans and their communities. at the federal reserve, we understand the depth of the problem and the need for action, and we will continue to use the policy tools that we have to help support economic recovery. we also know that the burdens of a weak economy and the benefits of economic growth often are not equally shared, and that, to be truly effective, policymakers must take into account how their decisions affect the least advantaged, not just the economy as a whole. my remarks today will focus on an important part of our economy, the housing sector. housing and housing finance played a central role in touching off the financial crisis and the associated recession, and the ensuing wave of foreclosures wreaked great damage on communities across the country. as i will discuss, for the first time in a number of years, the housing sector is improving, adding to growth and jobs. but the housing revival still faces significant obstacles, and the benefits of that revival remain quite uneven. strengthening and broadening the housing recovery remain a critical challenge for policymakers, lenders, and community leaders. the degree to which that challenge is met will help determine the strength and sustainability of the economic recovery and the extent to which its benefits are broadly felt. developments in housing and housing finance the multiyear boom and bust in housing prices of the past decade, together with the sharp increase in mortgage delinquencies and defaults that followed, were among the principal causes of the financial crisis and the ensuing deep recession – a recession that cost some 8 million jobs. and continued weakness in housing – reflected in falling prices, low rates of new construction, and historic levels of foreclosure

statement by jerome h. powell chair board of governors of the federal reserve system before the select subcommittee on the coronavirus crisis u. s. house of representatives june 22, 2021 chairman clyburn, ranking member scalise, and other members of the select subcommittee, thank you for the opportunity to update you on our ongoing measures to address the hardship wrought by the pandemic. since we last met, the economy has shown sustained improvement. widespread vaccinations have joined unprecedented monetary and fiscal policy actions in providing strong support to the recovery. indicators of economic activity and employment have continued to strengthen, and real gdp this year appears to be on track to post its fastest rate of increase in decades. much of this rapid growth reflects the continued bounce back in activity from depressed levels. the sectors most adversely affected by the pandemic remain weak, but have shown improvement. household spending is rising at a rapid pace, boosted by the ongoing reopening of the economy, fiscal support, and accommodative financial conditions. the housing sector is strong, and business investment is increasing at a solid pace. in some industries, nearterm supply constraints are restraining activity. as with overall economic activity, conditions in the labor market have continued to improve, although the pace has been uneven. the unemployment rate remained elevated in may at 5. 8 percent, and this figure understates the shortfall in employment, particularly as participation in the labor market has not moved up from the low rates that have prevailed for most of the past year. job gains should pick up in coming months as vaccinations rise, easing some of the pandemic - related factors currently weighing them down. the economic downturn has not fallen equally on all americans, and those least able to shoulder the burden have been the hardest hit. in particular, despite progress, joblessness continues to fall disproportionately on lower - wage workers in the service sector and on african americans and hispanics. the fed pursues monetary policy aimed at fostering a strong, stable economy that can improve economic outcomes for all americans. those who have historically been left behind stand the best chance of prospering in a strong economy with plentiful job opportunities. and our economy will be stronger and perform better when everyone can contribute to, and share in, the benefits of prosperity. inflation has increased notably in recent months. this reflects, in part, the very low readings from early in the pandemic falling