personally I see inflation as the innovation dispersion factor - the rate we let the value of innovation disperse throughout the society.
The rich benefit from inflation - especially if they have lots of assets like real estate that have increased dramatically in value.
inflation is the reason why it makes sense to own you house.
please enlighten me on how rich people benefit from (salary-)inflation
In the current environment, cost inflation is not a problem anymore. The reason why the FEDs might not lower the interest rate, is because of salary inflation.
So right now you are at advantage working. Houses are flatlining in value due to increased interest rates and you can negotiate better pays with your employer.
Also, please avoid straw men like first time buyers etc. These are not really fitting for the debate and only add load the debate emotionally.
But to take you on your argument: The situation for young working class couples has generally not changed for decades.
(I am Danish, so statistics I know and use are mostly centered around macro dynamics of Denmark, though this is irrelevant for the broader discussion, as the ECB also seeks 2% inflation target)
Everyone person who lives paycheck to paycheck, and is barely keeping their head above water as the cost of everything continues to skyrocket disagrees with you.
Good luck telling them that "cost inflation is not a problem anymore".
I can't speak to how things are in Denmark, but without a doubt the situation for young people (especially those looking to rent or buy a house ) HAS changed dramatically for the worse in the USA.
The US is not famous for their redistribution politics especially not the past 30 years.
In Denmark we have numerous policies in place, that ensures that housing stays as housing and does not become a speculative asset - this is good if you want to buy a house the popular places.
Also, remember this is macro dynamics. Yes, houses are more expensive in the bay area. But I bet that housing has comparatively gone down in value in less popular areas.
You would lose that bet.
Other than a few places where the town/city as literally being abandoned (i.e. towns in the middle of nowhere were the last factory has shut down) - home process have gone up everywhere in the last 3-4 years, and pretty dramatically so.
Or just impose regulations: an example of what we do in Denmark is to make house owners liable for having somebody to live in the unit (bopælspligt).
Would you seriously want the FED to solve the housing crisis instead of democratic appointed representatives?
that is absolutely absurd.
edit:
Anyways, to keep focus median house prices has seen a major correction after interest rates went up: https://fred.stlouisfed.org/series/MSPUS
combine this with higher salaries, and you can infer yourself that you get more house for you money now.
Additionally I can’t follow your second thought: are you saying that the inflation rate is directly correlated with the rate of the value of innovation dispersement? E.g. a high inflation should eventually lead to a high dispersion of innovations/a more innovative culture?
interest rates have reduced signitifanctly over the past 30 years.
also, remember that housing is not your San Fransisco condos. it is also the town house at some rural village.