Kevin Warsh’s Fed has a rent problem: Higher rates could fuel a… | HappeningNow.news

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Kevin Warsh’s Fed has a rent problem: Higher rates could fuel a ‘doom loop’ in housing, top economist warns

Every aspect of the Federal Reserve’s job requires balance: Even its legal mandate of maximum employment versus inflation at 2% requires a trade-off between the two when setting the U.S. interest rate.

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Every aspect of the Federal Reserve’s job requires balance: Even its legal mandate of maximum employment versus inflation at 2% requires a trade-off between the two when setting the U.S. interest rate. One conundrum the central bank—specifically, the rate-setting Federal Open Market Committee (FOMC)—must wrangle is the ripple effect that increasing the base rate will have on industries that ultimately trickle back to consumers.

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