Inflation rises, so fed raises interest rates. Rising interest rates makes house purchases less affordable, thereby increasing rentals. Increase rental demand causes increased rental prices, which increases inflation.
while redically oversimplified, it made me realize the number of factors that must be at odds with each other, and constantly changing with time, micro and macro economics, politics, etc. when interest rates change. I like the idea that the head of the Federal Reserve is in contact with corporate CEOs and the like, to get a real idea of what is happening.
