Wall Street Has Spent Billions Buying Homes. A Crackdown Is Looming.

Wall Street Has Spent Billions Buying Homes. A Crackdown Is Looming. By Bob Henderson

Lawmakers seek to slow housing price increases by driving investors out of the market. Meanwhile, Federal Reserve officials gather for their two-day policy meeting starting today, as inflation expectations tick higher and young Americans are getting left behind by higher home and stock prices. Read on for this news and more.

Top News Wall Street Has Spent Billions Buying Homes. A Crackdown Is Looming.

Wall Street went on a home-buying spree . Now, Democrats in the U.S. Senate and House have sponsored legislation that would force large owners of single-family homes to sell houses to family buyers. A Republican's bill in the Ohio state legislature aims to drive out institutional owners through heavy taxation.

Fed to Signal It Has Stomach to Keep Rates High for Longer

An ancient Chinese proverb that counsels "do nothing, and everything will be done" could sum up the Federal Reserve's latest approach to interest-rate policy. Fed officials will hold their benchmark federal-funds rate steady at its highest level in more than two decades, around 5.3%, at their two-day policy meeting that begins Tuesday.

Torry's Take Inflation Is Moving in the Wrong Direction Again. Just Ask Consumers.

The Federal Reserve has a policy meeting this week , and the latest inflation data is likely to set the stage for some uncomfortable discussions. Inflation expectations ticked higher in the latest consumer-confidence survey from the University of Michigan, released Friday.

U.S. Economy Young Americans Are Getting Left Behind by Rising Home Prices, Higher Stocks

The typical home value has jumped 40% since the start of 2020 and borrowing costs have soared to around 7%. Rising house and stock prices have wedged a large gap between the wealth of older generations and their children and grandchildren. A longtime rule of thumb in American homeownership-buy a starter home, then move up to a bigger place- doesn't feel like it works anymore.

Financial Regulation Regulators Seize Troubled Philadelphia bank, Republic First Bancorp

The bank was closed by the Pennsylvania state regulator on Friday and sold to fellow regional lender Fulton Financial after an auction run by the Federal Deposit Insurance Corp., confirming an earlier report by The Wall Street Journal.

Forward Guidance Tuesday (all times ET)

All day event: FOMC Apr 30-May 1 meeting

5 a.m.: Euro area inflation flash estimate for April

5 a.m.: Eurozone GDP for first quarter, first estimate

8:30 a.m.: U.S. employment cost index for first quarter

8:30 a.m.: Canada GDP for February

9 a.m.: S&P CoreLogic Case-Shiller Home Price Index for February

10:30 a.m.: Dallas Fed Texas retail outlook survey

Wednesday

8:15 a.m.: ADP National Employment Report for April

10 a.m.: U.S. construction spending for March

10 a.m.: U.S. Jobs and Labor Turnover Survey (JOLTS) for March

10 a.m.: ISM Report on Business Manufacturing PMI for April

2 p.m.: Federal Reserve interest rate decision

2:30 p.m: Fed's Powell post-FOMC meeting press conference

Research Rates dip and dollar declines ahead of Fed decision

Treasury yields and the dollar weaken ahead of Wednesday's Fed decision. The central bank is expected to keep interest rates at current levels, with markets mostly pricing cuts in the 2H. The Fed is also expected to issue hawkish guidance this week. Friday, April payrolls are forecast by economists polled by The Wall Street Journal to fall to 250,000 from March's hot 303,000 reading, with unemployment remaining at 3.8%. - Paulo Trevisani

Basis Points Japan likely carried out significant yen-buying intervention on Monday, according to a calculation based on data from the Bank of Japan and private money brokers. - Megumi Fujikawa The eurozone economy had a stronger-than-expected return to growth at the start of the year as inflation cooled, a sign that the currency area is starting to recover from the damage done by Russia's invasion of Ukraine. - Paul Hannon and Ed Frankl German inflation held steady this month , adding to signs that price pressures have cooled sustainably in the eurozone's most important economy. - Joshua Kirby Asia-Pacific economies seem to be weathering the impact of high interest rates, weak global demand and other headwinds rather well, the IMF says as it upgrades its growth forecast for the region . - Fabiana Negrin Ochoa China signaled a new campaign to revive its flagging economy, hinting at lowering borrowing costs and propping up the property market while announcing plans to convene a long-deferred policy meeting, whose delay had fueled unease about Beijing's economic management. - Chun Han Wong China's latest batch of factory activity showed that the vast manufacturing sector has continued growing, but might have lost some steam as economic headwinds persist. Australia's March retail sales were much weaker than expected , further confirming that the pulse of consumer spending has become barely detectable, while also damping recent money market speculation that the next move in interest rates might be up. - James Glynn About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Bob Henderson in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

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04-30-24 0719ET