As safe as houses

The Fed is walking an impossibly thin tightrope between controlling inflation and collapsing the housing market.

Last month, the Federal Reserve Bank of Dallas sounded the alarm on the housing market. “There is growing concern that U.S. house prices are again becoming unhinged from fundamentals,” wrote their economists in a piece called Real-Time Market Monitoring Finds Signs of Brewing U.S. Housing Bubble. They are right, if not a bit late to the party. Over the …