The Fed released the transcripts for the 2004 FOMC meeting this week. There definitely was some mention of a possible housing bubble, but little discussion.
This graph shows the Fed estimate of the rent-to-price ratio in June 2004. Usually this is drawn inverted (Price-to-rent). And this was after the Fed made some technical adjustments - otherwise, in the words of a Fed researcher, the graph would 'have looked more alarming'.
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