Odd Lots
Strong Housing Has Fed Looking Elsewhere to Slow Economy, Barkin Suggests
Why the US economy has remained resilient to higher rates.
Richmond Fed President Thomas Barkin
Source: Source: Federal Reserve Bank of RichmondThis article is for subscribers only.
Strength in the US housing market may mean the Federal Reserve needs to slow other sectors of the economy more to stamp out inflation, Richmond Fed President Tom Barkin suggested in an interview with the Odd Lots podcast.
In the past, housing was a critical part of the transmission mechanism from tighter monetary policy to a slowdown in the economy because it’s highly interest-sensitive, and it accounts for a sizable portion of swings in economic activity.