Falling house prices will help the Fed tame inflation – but they also increase the risk of a prolonged economic downturn

Quick Summary:

"Eventually this should spill over and begin to impact jobs growth and the labor market," Macquarie's head of economics David Doyle told Insider.

"A decline in home buying is one of the byproducts of tighter monetary policy," Macquarie's head of economics David Doyle told Insider.

And that would cause a fresh policy headache for the Fed, which has raised interest rates six times this year to combat price pressures.

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Category: Economy

Markets: United States

Topics: Global Recession Housing market crash Stock Market Analysis Real Estate Investing Stock Market Strategy Housing Investing Strategy Investing Outlook House Prices Markets Economy Investing Analysis Recession Housing Market MI Exclusive Real Estate Stock Market Outlook

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-11-26 @ 09:00:00 (2 months ago)

News Timezone: GMT -5:00

Ranking: #161 (out of 1570 stories this day)

News Source URL: markets.businessinsider.com

Language: English

Article Length: 659 words

Reading Time: 4 minutes read

Sentences: 44 lines

Sentence Length: 15 words per sentence (average)

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Copyright Owner: © Business Insider

News ID: 1946963

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