With housing inflation taking off, we can only have 1970s-style inflation if we have a massive supply shock in other areas.
The Owner's Equity of Rent has caused a lot of chaos this year for Fed members, who were all anticipating this metric would go lower faster.
The labor market has been getting softer for some time, but it hasn't broken yet. The Fed is more focused on a dual mandate, valuing labor data over inflation.
The bond market has headed lower twice since 2022, assuming the economic data was weakening, but yields have rebounded as the economy remains stable.
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