Frederic Mishkin Governor of the Federal Reserve warned the members of the central bank to be on the alert about the negative effects that price stability restoration can have on the economy.
It is very difficult to stabilize inflation when temporal factors influence its increase. When inflation goes up because of temporal factors it is hard to control price stability.
It appears them that the economy is going to go through a bumpy road for a while until the house market, gasoline cost, inflation and higher salaries stop affecting negatively one another, each of these factors are influence too by the external world market context and by the evolution of on economic process(like the house market) whose development and behavior presently is beyond anyone’s control.
Some analyst believe that the lowering of interest rates by the feds could benefit the house market however this will have other important negative effects in the economy and therefore at this point it is an undesirable option..