Boston Fed President Eric Rosengren said in an FT interview that “it’s very important for us to get back to our 2% inflation target but the goal is for that to be sustainable.” And for that to be sustainable, “we can’t have a boom and bust cycle in something like real estate.”
“You don’t want too much exuberance in the housing market,” he added. But “it’s worth paying close attention to what is happening in the housing market.”. While he’s not saying that there will be a bust, “such cycles have occurred multiple times, a source of financial stability concerns.
