Fed Chair Powell told a House Select Subcommittee on the Coronavirus Crisis this week that inflation is still seen as transitory, despite recent data showing big increases over last year.

Powell also reaffirmed the Fed's intent to encourage a "broad and inclusive" job market recovery and to avoid interest rate increases based only on fear of coming inflation.

Unemployment claims resumed their downward trend last week, after rising slightly in the prior week. The labor market continues to head toward a full recovery.

The median price of an existing home was $250,300 in May, a 23.6% year-over-year increase. Low inventory and strong demand are fueling extraordinary home prices.

Existing home sales in May were down for the 4th straight month, falling 0.9%, as just 1.23 million homes were for sale. That's a 2 1/2-month supply and a 20.6% drop from a year earlier.

New home sales also fell in May, reaching a one-year low. The median price of newly built houses jumped 18.1% to $374,400, due in part to expensive materials, including lumber.