"Inflation's Thorny Grip on Housing Market and Economy"

Inflation in the US is being fueled by soaring housing costs, with prices for renting or buying homes rising significantly since President Biden took office. The "stickiness" of housing prices, driven by long-term agreements and limited supply, means cost increases are unlikely to decline soon. The high inflation, currently at 3.5%, has led the Federal Reserve to raise its federal funds rate to the highest in 23 years, impacting credit costs and dampening new construction. The Biden administration has proposed a $258 billion budget to boost housing supply, but concerns remain about the impact on inflation and the constraint of high interest rates on private developers.