Fed’s efforts to control inflation will work mainly through the housing market

 Mortgage rates — and long-term rates for business borrowers — have already shot up more or less to prepandemic levels, even though the Fed has just begun to hike

Since about 2014, the cost of shelter has been rising considerably faster than the overall cost of living. I’m not talking about house prices; I’m talking about rental rates for apartments and “owner’s equivalent rent,” 

We need higher interest rates, at least for a while, to bring inflation down. But higher rates will “work” largely by depressing housing construction, which was already too low.

Paul Krugman NYT 19 April 2022

https://www.nytimes.com/2022/04/19/opinion/inflation-interest-rates-housing-mortgage-loan.html