Who are the winners and losers of the Fed hiking interest rates?
NPR Online NewsAPR 3 2022
Although the Fed doesn't set mortgage rates, its actions influence them. The central bank waited too long to cool inflation, and now the housing market is paying the price: Mortgage rates are rising faster than the news can keep up with, increasing pressure on an economy already tormented by relentless inflation.
The process of bringing down inflation is unpopular and pain-inducing, but necessary. There is broad consensus among Fed bankers and economists that it's time to increase quantitative tightening to rein in inflation; the Fed is acting well within its mandate to try and tamp down economic pressures.