Conclusion In the past several decades, real estate markets, both residential and commercial, have affected the U.S. economy in both negative and positive ways. Naturally, the Federal Reserve monitors these markets to gauge their impact on broader economic activity.
For example, low, stable, and predictable inflation means that our salaries and our savings aren’t eroded by rising prices, nor will our economy be devastated by deflation as it was in the 1930s. Good monetary policy means that we can plan for the future with confidence. A sound financial system means that we can conduct financial transactions with equal confidence.