, Columnist
Pandemic Homeowners Are the New Envied (and Hated?) Elite
The high inflation and rock-bottom mortgage rates of just a few years ago created a different form of inequality, complicating the Fed’s job.
Locked out.
Photographer: David Paul Morris/Bloomberg
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The pandemic years transformed wealth in the US, sowing the seeds of a new form of inequality.
The divide is clear when describing the state of family finances in 2024. Household balance sheets, in aggregate, are arguably in the best shape ever. At the same time, borrowers are getting squeezed as high interest rates make servicing new debt more challenging. This sets up a difficult balancing act for the Federal Reserve as it contemplates policy changes.