The CPI and PPI have not shown much inflation during the current Fed tightening cycle. The US labor market is showing some pressure recently. But given the âglobal labor arbitrageâ (using economists' term), the labor cost is not likely out of control. It seems to me the Fed is looking at the housing market. The asset price stability is not officially Fedâs mandate so the Fed will never explicitly state that. They say the Fed wonât stop tightening until something breaks. In 1994 tightening cycle, itâs the bond market. In 1999, itâs the equity market. This time, the housing market?