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Housing, Inflation and Why the Fed Should Consider a Pause
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Housing, Inflation and Why the Fed Should Consider a Pause

CalculatedRisk by Bill McBride's avatar
CalculatedRisk by Bill McBride
Dec 13, 2022
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Housing, Inflation and Why the Fed Should Consider a Pause
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Expectations are the FOMC will announce a 50bp rate increase in the federal funds rate tomorrow and increase the "terminal rate" to 5-5.25%.

However, it appears the Fed is missing the recent sharp slowdown in household formation. The surge in household formation during the pandemic was unrelated to monetary policy (it was mostly due to work-from-home an…

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