Fed's Impact on Construction and Supply Revealed in Housing Inflation Problem

Isn't it axiomatic that higher borrowing costs will lead to higher inflation? We have a supply problem. Need lower borrowing costs to build more capacity (including housing).

'Lack of supply and high mortgage rates keep homes expensive, pressuring rents higher as potential buyers find themselves stuck in the rental market. Elevated shelter inflation leads the Fed to hold rates higher for longer, hindering construction.' https://t.co/ZwOkTHUU3M

Bloomberg@business

2 years ago

The Fed is part of the housing inflation problem, says @conorsen. High borrowing costs are hindering construction that needs to happen now https://t.co/AxT1mJthd7 via @opinion