Fed Inflation Goal Is Elusive as U.S. Rents Stabilize: Economy

Federal Reserve efforts to nurture a more robust rate of inflation this year are likely to fall short. The reason: the biggest gains in rents are probably over.

The costs to lease residential real estate, the second-biggest component of the price measure tracked by U.S. central bankers, helped put a floor under inflation over the past two years as most other components decelerated. Now, with builders cranking out a record number of multifamily buildings and the job market still far from tight, the outlook for rents is the bleakest it’s been in four years.