DALLAS (Reuters) - The Federal Reserve is watching signs of a slowdown in the housing industry and monitoring levels of corporate debt even as it remains confident in the economy’s continued growth, Fed chair Jerome Powell said on Wednesday.
“There are a lot of factors weighing on home building right now. Material costs, labor scarcity ... It is rates as well,” with the costs of home mortgages rising, Powell said. While leverage and other credit indicators are healthy overall, “there is some significant corporate borrowing and we have our eyes on that.”
Reporting by Howard Schneider; Editing by Sandra Maler