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Rising rates means rents will likely be increased and then reduce in the medium term. Conversely, rate cuts would likely induce rents to reduce temporarily and
by jbay808 4y ago
Rising rates means rents will likely be increased and then reduce in the medium term. Conversely, rate cuts would likely induce rents to reduce temporarily and then increase in the long term.
There doesn't seem to be any easy solution other than raising rates and then getting over the hill.
- readthenotes1 4y agoAddressing inflation when it shows up instead of claiming baselessly that it's transitory would have been much easier than what they're trying to do now. There is an argument that what the Fed does is mostly irrelevant anyway until the supply chain problems are fixed. Volcker may have done the right thing back in 1981, and he may have been aided greatly by The oil shock being completely absorbed by higher efficiency and more production
- jbay808 4y agoAbsolutely they should have moved sooner, and it would have been much less painful. But I don't think there's any irrelevance to what they are doing now. Especially where shelter is concerned.