Stephen Miran, a member of the U.S. Federal Reserve, stated that the decline in housing prices will lead to a noticeable contraction in inflation in the upcoming period. He emphasized that demographic policy in recent years has been one of the main factors driving housing prices to high levels.
Miran explained that the Federal Reserve does not see a significant difference between the rise in commodity prices and the increases in prices in other sectors, stressing that housing-related inflation has a direct impact on overall price levels.
He pointed out that the Federal Reserve is closely monitoring demographic changes occurring in the United States, noting that the current negative net migration may contribute to cooling the housing market. He added that the decline in demand for housing due to reduced immigration will push prices down, which will gradually curb inflation.
Miran affirmed that the Federal Reserve places great importance on housing indicators as one of the main drivers of inflation, noting that any decrease in property prices will ease inflationary pressures overall.
Economists believe that Miran's statements reflect the Federal Reserve's approach to relying on market factors to correct housing prices, rather than direct intervention. They also consider that this perspective aligns with monetary policies aimed at achieving price stability in the long term.
It is worth mentioning that the Federal Reserve closely monitors housing data as part of its core inflation indicators, especially after housing prices were one of the largest sources of inflationary pressures in recent years.
