Rising Rents Are Fueling Inflation, Posing Trouble for the Fed
The New York Times
Economic policymakers have said inflation will prove temporary, but rising rents may challenge that view and pressure Washington to react.
Terrell McCallum, a private wealth adviser in Dallas, spends a lot of time thinking about markets and interest rates. He knows that the Federal Reserve targets 2 percent annual price increases on average, so it was a shock when he learned that his rent would increase a whopping 10 percent this year.
“I can afford it, but it gets to the brink of financial burden,” said Mr. McCallum, 33. He and his wife have been saving up for their first home, but now that they are paying $1,830 for their apartment and fees, that will become more difficult. He tried to push back on the increase, but the company he rents from wouldn’t budge.
“They said: ‘This is what the market is doing.’”
