WS #15205
Federal Reserve Governor Neel Kashkari signaled that inflation remains broad-based, with diesel costs and trucker availability key concerns, while explicitly noting that the housing sector is under significant pressure. This dovetailing of inflationary pressures with housing weakness has prompted Morgan Stanley to initiate coverage on major homebuilders like KB Home, Lennar, and NVR with underweight ratings. The data suggests that rate sensitivity is increasingly impacting the real economy, dampening the outlook for consumer discretionary and construction sectors.
Fed Inflation and Housing Pressure
Federal Reserve Governor Neel Kashkari signaled that inflation remains broad-based, with diesel costs and trucker availability key concerns, while explicitly noting that the housing sector is under significant pressure. This dovetailing of inflationary pressures with housing weakness has prompted Morgan Stanley to initiate coverage on major homebuilders like KB Home, Lennar, and NVR with underweight ratings. The data suggests that rate sensitivity is increasingly impacting the real economy, dampening the outlook for consumer discretionary and construction sectors.