Fed Goolsbee says if housing inflation decrease seen in April CPI continues, that’s great!

Federal Reserve Bank of Chicago President Austan Goolsbee in a radio interview

• If decrease in housing inflation seen in april cpi data continues,
  that’s great — marketplace radio interview
• I’m still
  optimistic, and my read of the evidence is that house price inflation
  comes down substantially

Data here ICYMI:

Goolsbee may have a point, but I am not getting too excited.

The cost of housing was a big contributor to inflation in April, the CPI showed:

• Shelter prices +0.4% last month
• including +0.4% increase in rent

Analysts, however, point to prices rising at the slowest pace in two years and contend that housing costs will slow even further and push the US inflation rate below 3% later in 2024.

The thing to remember, of course, is many of these analysts were screaming for 6 or even 7 rate cuts this year back in January.

Take a chill pill, those haven’t gone up with inflation nearly as quickly. Not much demand for those in the new hype hype hype world.