AEI’s April Home Price Index UP 17.3% YoY As The Fed And “Slowhand” Powell Keep Monetary Stimulus In Place (Bostic Talking About A Pause?) – Confounded Interest – Anthony B. Sanders

All I can say is “Wow.” Tobias Peter and Ed Pinto of the American Enterprise Institute (AEI) released their April housing report and it was a doozy. The AEI’s home price appreciation index came in at a blood curdling 17.3% YoY.

The reason why home prices are still raging at 17.3% YoY? The Fed’s monetary stimulypto is STILL in place! The Fed’s balance sheet (green line) is still staggering, and The Fed Funds target rate (white line) is a measly 1%.

Atlanta Fed President Raphael Bostic is talking about a pause in Fed tightening. Which they haven’t paused yet.

Fed Chair Jerome Powell is really “slowhand,” not Eric Clapton. Bostic is now a member of The Fed’s “Slowhand” strategy.