[dlcarrier]

Don't overlook quantitative easing. Introducing more money into a monetary system has a significant inflationary effect on the money that was already present.

Also, housing costs don't statically climb as interest rates go up. A decrease in market price makes up for most of the difference.

[nonethewiser]

But Warsh wants to unload the Feds balance sheet so this is very much in agreement with his policy.