Too Much Fed Stimulus! Case-Shiller National Home Price Index Soars At 19.75% YoY In May Thanks To “Slowhand” Powell And The Never-Shrinking Balance Sheet (Red States Soaring Faster Than Blue States)

The housing market is suffering from Too Much Fed Stimulus!

The May Case-Shiller home price indices are out and they’re a doozy. The national home price index rose 19.75% YoY. Why? You can thank The Fed’s “slowhand” approach to withdrawing the Covid-related stimulypto.

Where are home prices booming? Everywhere.

Miami, Tampa, Dallas and Phoenix (red states) are growing at over 30% YoY. Boston, Chicago, Cleveland, Detroit, Minneapolis, New York, Portland and Washington DC (blue states) are all growing at over 10% YoY. Cleveland is a blue city in a mostly red state while San Diego is a red city in an almost blue state.

Jerome “Slowhand” Powell is not shrinking The Fed’s balance sheet.