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Fed Searches for the Magic Number to Cool a Red-Hot U.S. Housing Market

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The Fed usually relies on higher interest rates to put the brakes on inflation by cooling the housing market. A pandemic-driven price boom puts that to the test.

set out to cool the economy and slow inflation in the past, it counted on the housing market to do much of the work. By raising interest rates, the central bank made mortgages more expensive and trimmed the number of buyers.

 

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