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Monday, December 23, 2024

Fed Chair Jerome Powell May Be Waiting Until 2026 for Housing Inflation to Cool


Federal Reserve Chair Jerome Powell said last week central bankers are keeping a close eye on housing inflation, which “has yet to fully normalize.” They could be waiting more than a year.

It may take until mid-2026 for rent inflation in the consumer price index to subside toward its pre-pandemic norm, according to research by the Cleveland Fed. While several measures suggest that new rents in particular are coming down, fewer people are moving and signing new leases — so the sample in the CPI doesn’t capture as much turnover, the researchers said.



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