Jerome Powell (Fed): We may wait in 2026 for home inflation to recede

The president of the US Federal Bank ( ) said last week that central bankers closely monitor the inflation of housing, which “has not yet been fully normalized”. They could wait more than a year. According to Bloomberg, Jerome Powell believes it may be needed by mid-2026 to yield rent inflation to the consumer price index towards his pre-difference rule, according to a Cleveland Fed survey. While various measurements show that new rents in particular are reduced, fewer people move and sign new leases – so the sample in the ITC does not record such a large turnover, researchers said. Housing is the largest category of the ITC and represents more than half of the October monthly increase. If the indicator remains increased for another year and a half, as predicted by the Cleveland Fed, it will be a challenge for policy makers who call on inflation progress as a key argument for reducing interest rates.