Fed rate hikes spark concerns over high interest rate and high rent vicious cycle
APO Apollo Global Management Inc
$115.30 -0.22%
View chart & analysis → - 1Torsten Slok of Apollo Global Management warned that if Fed Chair Kevin Warsh raises rates further, a doom loop of rising rents and inflation could occur.
- 2The U.S. Census Bureau announced that housing completions in August decreased by 27.1% compared to the previous year.
- 3Joel Burner of Realtor.com argued that the rent issue is not an immediate problem but something that will occur in a few years.
So what's the key point?
Raising interest rates in the U.S. could create a bad cycle where rents rise along with inflation. Experts suggest that with fewer houses being built, rent issues may emerge in a few years.
Source Moneywise · View original ↗
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