Are Higher Rates Inflationary Now?

On Thursday, while editorializing around the slowest pace of US existing home sales since 2010, I reiterated an important point which one hopes is becoming clear to Fed officials: High rates can be inflationary. In the housing market, the dynamic is simple enough. Anyone who bought or refinanced in 2020 or 2021 has a rate they aren't likely to give up. Sure, someone who owns their home free and clear and who's content to move into a home of equal or lesser value, might be willing to sell, but i