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by nine_zeros 1557 days ago
That is silly. With mere speculation of interest rate increase, housing sales have already started to slow down. With every 25 bps increase, real asset interest rates will go much higher, causing much more slowdown in sales, GDP and inflation.

If fed accelerates rate increases, we are very likely to see a recession. Which will automatically reduce demand for goods and services and thus inflation.

But reducing inflation by causing mass unemployment will lead to other problems.

1 comments

You can build houses cheaper. They don't have to be as overpriced as they are.