> FED only has a demand-side lever
Mortgage rates are demand side. But rates also influence all sorts of supply-side inputs, from the cost of developer financing to the cost of holding inventory for suppliers.
Mortgage rates are demand side. But rates also influence all sorts of supply-side inputs, from the cost of developer financing to the cost of holding inventory for suppliers.
See a completely plausible causal chain:
Inflation up -> Rates up -> Housing purchases down -> rental demand up -> rental prices up -> inflation up