David Stockman on the Status of the Everything Bubble Created by the Fed• https://internationalman.com by David Stockman
…….those higher interest rates are making mortgages more expensive and leading to fewer home sales. That leads to less spending on appliances, paint and other home goods, because people commonly buy those items ahead of a sale and after moving.
"The actions of the Fed are leading to lower consumption," he said.
You don't say!
Then again, has it occurred to the good professor that the years and years of ultra low mortgage rates engineered by the Fed were totally unnatural, uneconomic and not sustainable?
The evidence for that is in the chart below. It shows that for most of the last three decades, the Fed drove the after-inflation or "real" interest rate on 30-year mortgages steadily lower until it actually turned negative.