You are right about rising rents causing the CPI to rise, because rents are 30 or 40% of CPI.

But rents cannot rise above wages. Despite what landlords ask… More people are moving out of SD, so I think rents will drop by next year. people in NOD will leave SD also.

I think the Fed has to give up on fighting inflation. They disappointed me by giving a pause. This shows they are NOT serious about inflation at all.

Perhaps, as someone else noted, this fact of being easy on inflation is to blame for the low interest in Treasuries this week. Who wants to keep buying dollars if their value is inflated away by a Fed not serious about fighting inflation and keeping the dollar strong?

I wouldn’t be surprised if they do all kinds of tricks to fool us into thinking inflation is lower. Removing rents from CPI, and replacing it with housing prices, seems like a very good way to do it. Any chance they can get away with that?