09/10/2026
USA: Why âPrice Stabilityâ Is a Myth
As someone whoâs spent decades immersed in the world of mortgage lending and economic trends, I often hear talk about achieving true âprice stabilityâ in the US. But letâs look deeper: when prices rise in one sectorâsay, college tuition or hotel roomsâitâs often because consumer spending has shifted away from other goods and services, not because prices are climbing everywhere at once. Take technology, for example. As supercomputers became accessible in our pockets, other finite luxuries like event tickets and tuition saw costs surge. This pattern shows that prices reflect a complex dance of global production and countless daily transactionsâfar beyond the reach of any central bankâs promise of stability. In fact, if we could count on a consistently steady dollar, we might see investments flow away from inflation hedges and into broader opportunities, potentially compressing prices for many goods while making true scarcity even more valuable. The bottom line: price stability, as an absolute, is more myth than reality. Shifting prices often signal progress and evolution in our economyânot just decline. These are the dynamics I watch closely, because understanding them is key to smart decisions in lending, homeownership, and investment.
