aggressively to shocks that have potentially persistent adverse effects on both inflation and real activity. and we need to monitor long - run inflation expectations closely to avoid losing credibility with the markets. in closing, i want to emphasize that the federal reserve will continue to play its part in ensuring the longer - run health of the economy by implementing policies designed to achieve its dual mandate. as you know, since last june the fomc has left its target for the federal funds rate at 5 - 1 / 4 percent. i recognize that uncertainties surrounding the economic outlook have increased recently, and i remain concerned that the persistence of inflation at the recent elevated rate could have adverse consequences for economic performance. however, i continue to believe that the current stance of monetary policy is likely to foster sustainable economic expansion and a gradual ebbing in core inflation. as always, future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth as implied by incoming information.

for release on delivery 9 : 10 a. m. edt march 24, 2022 the red hot housing market : the role of policy and implications for housing affordability remarks by christopher j. waller member board of governors of the federal reserve system at “ recent fiscal and monetary policy : implications for u. s. and israeli real estate markets, ” a conference sponsored by the alrov institute for real estate research, the coller school of management, the new jersey - israel commission, and the rutgers center for real estate ( via webcast ) march 24, 2022 thank you, debra, and thank you to the alrov institute and the rutgers center for real estate for the invitation to be part of this conference. today, i would like to talk to you primarily about developments in the residential real estate market since the start of pandemic and then look ahead at the outlook for housing. 1 i will consider how rental and home prices have increased and how monetary and fiscal policy have affected these prices. as a member of the federal open market committee ( fomc ), i watch real estate trends pretty closely because they have a bearing on our pursuit of maximum employment and price stability. real estate makes a sizable contribution to gross domestic product, from both housing investment and consumption spending on housing services, which is what renters and homeowners pay for the shelter and amenities provided by housing. real estate also matters for inflation. housing services represent about 15 percent of the personal consumption expenditure price index, and it represents an even larger share of another well - known inflation yardstick, the consumer price index. real estate is also a large and broadly held asset class, so it is important for the federal reserve ’ s mission of promoting financial stability. so, my colleagues and i on the board of governors and the fomc share your interest in what is happening and will happen in real estate markets. as we all know, a singular feature of the u. s. expansion since the covid - 19 recession has been the red - hot housing market. trust me, i know it is red hot because i am trying to buy a house here in washington and the market is crazy. both house prices i am grateful to raven molloy for assistance in preparing these remarks. these remarks represent my own views, which do not necessarily represent those of the federal reserve board or the federal open market committee. - 2and rents are up significantly across the nation, while vacancy rates for rented and owneroccup