Frozen US Housing markets & Inflation

After a period of steady disinflation from the ~9% peak in June 2022, US CPI inflation data has disappointed in recent months by coming in higher than expectations. It appears inflation remains “sticky” above 3%, complicating monetary policy for the Fed. But what if the “restrictive” monetary policy stance could be counterproductive to some important components of inflation, hence actually keeping CPI elevated?

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