Air travel is certainly back as consumers return to the skies after years of covid-related curbs. The TSA reports that on Friday it screened 2.785m people, which is the highest number of passengers in a single day since 2019.
Couple that with today’s surprise 21.7% jump in US housing starts and higher rates aren’t exactly having the desired effect.
Airfares for later in the summer have come down compared to where they were a few months ago, so we could (should?) be seeing the 2019 highs — which are just below 2.8m — taken out on the July 4 weekend.
The question for the Fed is whether this indicates that rates need to go significantly higher, or whether the lag of monetary policy needs time to work.
This article was originally published by Forexlive.com. Read the original article here.