> inflation was a big enough threat to slow the entire economy to a crawl. Naw, central banks saw wages starting to go up and that was their cue to act. But in

> inflation was a big enough threat to slow the entire economy to a crawl. Naw, central banks saw wages starting to go up and that was their cue to act. But interest rates increases aren’t as effective of a tool against wages vs. commonly leveraged assets. If the central bankers acted when house prices started going to the stratosphere starting right in Jan 2020, rate increases would have been far more effective and wouldn’t have been as dramatic. Note that the inflection was before the pandemic was in full swing. They stood too long at the sidelines and lost control of the situation. https://fred.stlouisfed.org/series/CSUSHPINSA https://fred.stlouisfed.org/series/CSUSHPINSA