News > Housing slump set to give Fed an inflation fighting assist

Housing slump set to give Fed an inflation fighting assist

The Federal Reserve’s interest rate increases have brought on a housing slump as severe, as that of 2007-09, inflicting pain on prospective buyers, homeowners, builders and other industries linked to real estate. Slumping housing could help deliver the lower economic activity and inflation that the Fed wants in the coming year. The pandemic that hit the U.S. in March 2020 delivered an unexpected housing boom, driven by working from home.