The Fed can’t fix inflation alone. Here’s why

By Karl Evers-Hillstrom

The Federal Reserve continues to hike interest rates in its fight to bring an end to historic inflation. The central bank has driven up borrowing costs and slowed the economy in an effort to reduce demand for goods and services, which leads to lower prices….“We’re not done by any stretch. But inflation has cooled and more quickly than I and others who were so upset when the Fed was late intervening,” said Karen Petrou, managing partner at policy research firm Federal Financial Analytics……Existing home sales have fallen for eleven straight months, according to the National Association of Realtors.Home price growth has slowed dramatically from the extreme gains in recent years and has turned negative in some parts of the U.S….“Mortgages are where the Fed has the heaviest foot in terms of slamming on the brakes and having very little lag time between what it does and how a market cools,” Petrou said.