Why Real Estate Is To Blame for America’s Spiking Inflation—and How It May Be the Key to Taming It

Abstract

Inflation has become public enemy No. 1, and the U.S. Federal Reserve has put a big, broad target on its back. The Fed is desperately attempting to battle fast-rising prices on everything by raising its short-term interest rates yet again on Wednesday. The biggest driver of high housing costs is that there aren’t enough homes to go around for both buyers and renters. That’s expected to push the inflation the Fed is pushing the Fed. The big question is. Will the Fed to continue to raise rates. The biggest question is whether the Fed will continue to raised rates. ‘My guess is they’ll have to raise Rates one or two more times,’ says economics professor Lawrence J. White, of New York University. “They’ve got a tough challenge,” says Lawrence J., of NewYork University. Inflation is not something the Fed can fix. The Fed can't do that.