Core PCE

So today the Core PCE was within the Federal Reserves stated target range.  A strange thought drifted across the mind this morning, it was about how housing prices on the way up caused the owner equivalent rent to go up therefore inflationary.  Now with home prices in decline, what impact is owner equivalent rent having on PCE, CPI?

At what rate of housing price decline will cause inflation to fall to mid target range?  How much room does the Federal Reserve have to lower rates because of housing deflation?
Posted by Bradley Fluetsch at 8/31/2007 3:42 AM
Categories: Economics
 

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