2min chapter

The Compound and Friends cover image

12 Things Everyone Got Wrong About Inflation

The Compound and Friends

CHAPTER

The Fed's Effect on Housing Prices

The Fed has caused a huge swath of people who otherwise would be home buyers to go into rental units. That excess rental demand is a big part of the reason why, yes, it's more expensive to own a home today relative to renting than it's ever been. And that's really problematic. You want lower inflation, Jerome Powell? Drop rates, 50 basis points, inflation will actually come down.

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