Kevin Warsh’s Fed has a rent problem: Higher rates could fuel a ‘doom loop’ in housing, top economist warns

Every aspect of the Federal Reserve’s job requires balance: Even its legal mandate of maximum employment versus inflation at 2% requires a trade-off between the two when setting the U.S. interest rate. One conundrum the central bank—specifically, the rate-setting Federal Open Market Committee (FOMC)—must wrangle is the ripple effect that increasing the base rate will have…