Federal Reserve Chair Jerome Powell emphasized that the United States faces a long-term shortage of housing, a structural issue that the Fed's policies cannot directly address. Powell highlighted that the best approach to supporting the housing market is to restore price stability in a sustainable manner, which would help bring mortgage rates down. He noted that while there is a current high level of interest rates, the Fed does not set mortgage rates and cannot influence housing supply through its monetary policy. Powell also downplayed the impact of mortgage-backed securities (MBS) runoff on housing costs. Despite some regional price declines, housing prices remain near all-time highs, and affordability challenges persist. Powell stressed that building more homes is essential to resolving the shortage, but this is beyond the Fed's control. The Fed's focus remains on achieving price stability and a strong labor market as the best means to support the housing market over the longer term.