Fed Chairman Signals a Possible Pause on Rate Hikes

US Economy
Published
In a positive development for NAHB and the housing industry, Federal Reserve Chairman Jerome Powell has signaled that the central bank is unlikely to raise rates further unless clear signs emerge that strong economic growth could trigger a rise in inflation.

As reported by the Wall Street Journal, Powell said during an address in New York today that “incoming data over recent months show ongoing progress toward both” of the Fed’s dual mandates to foster maximum employment and price stability.

NAHB has been urging the Fed to hold the line on rate hikes, noting that the bulk of inflation is now due to elevated shelter inflation, which was responsible for 90% of the headline inflation rate in July and August.

With mortgage rates at a 23-year high and mortgage application activity down to its lowest level since 1996, NAHB and other housing groups sent a letter to Chairman Powell earlier this month. Our message was crystal clear: The most effective approach to tame shelter costs — and assist on the broader inflation fight — is to facilitate the construction of attainable, affordable housing.

Uncertainty about whether the Fed will continue to raise interest rates has contributed to recent mortgage rate hikes and volatility.

This is why NAHB wants Powell to publicly state that the Fed does not contemplate further rate hikes. While his remarks today did not go that far, they suggest that the Fed is seriously considering a pause on further rate hikes for the foreseeable future as the central bank analyzes incoming economic data to assess any changes in economic conditions.

It should also be noted that other top Fed officials have publicly called for a pause in rate hikes after NAHB’s joint letter was sent to the Board of Governors of the Federal Reserve.

Speaking on Bloomberg Television earlier this month at the annual convention of the American Bankers Association, Federal Reserve Bank of Atlanta President Raphael Bostic said: “I think that our policy rate is at a sufficiently restrictive position to get inflation down to 2%. I actually don’t think we need to increase rates anymore.”

Last week, Philadelphia Federal Reserve President Patrick Harker said: “I believe that we are at the point where we can hold rates where they are. By doing nothing, we are still doing something. And, actually, we are doing quite a lot.”

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership | HBA

Oct 14, 2025

North Carolina HBA, Local Builder Honor First Responder through Home Sale

The North Carolina Home Builders Association recently partnered with a local builder for a new project to benefit the family of a fallen first responder.

Leading Suppliers Council

Oct 13, 2025

OBBBA and the Next Chapter of Heat Pump Commercialization

The One Big Beautiful Bill Act is accelerating a shift toward retrofit-ready, installation-friendly systems that builders can leverage to control costs and expand opportunities.

View all

Latest Economic News

Economics

Oct 14, 2025

Custom Home Building Share Declines in 2024

In 2024, 17.5% of all new single-family homes started were custom homes. This share decreased from 18.8% in 2023 and from 20.4% in 2022, according to data tabulated from the Census Bureau’s Survey of Construction (SOC).

Economics

Oct 13, 2025

Hispanics Comprise Nearly One-Third of the Construction Labor Force

Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to the 2023 American Community Survey, non-Hispanic White workers still account for the majority of the construction industry at 57%. Hispanic workers now represent nearly one-third of the labor force at 32%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8%.

Economics

Oct 10, 2025

Vinyl Surpasses Stucco as Most Used Principal Exterior Wall Material

In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.