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Investor Peter Boockvar blames Fed policy ‘mistake’ for surging housing and auto prices


Investor Peter Boockvar slammed the Federal Reserve over surging inflation that’s driving up the cost of essential, big-ticket items.

As Fed policy makers gather for their two-day meeting on interest rates, Boockvar warned there’s little they can do to cool prices.

“Monetary policy mostly and pretty much predominantly influences the demand side of the economy, particularly the interest rate sensitive areas of the economy,” the chief investment officer at Bleakley Advisory Group told CNBC’s “Trading Nation” on Tuesday.

His warning extends particularly to housing and autos.

“A home is up 20% year to year. If you’re looking to rent an apartment or a house, those prices are rising 18%,” said Boockvar. “Car prices are at record highs partly because of supply, but also cheap money influencing demand.”

The latest economic data out Tuesday confirms inflation is booming. The producer price index, which tracks wholesale prices, jumped to its fastest pace on record in November.

Boockvar, who went on inflation watch in mid-2020, sees little relief ahead.

‘Mistake was not doing it earlier’

Source: CNBC