Billionaire Investor Predicts Sharp Drop in Inflation Due to Housing Market Downturn.

Billionaire investor Barry Sternlicht predicts that inflation will drop off due to falling rent and housing prices. He pointed to the recent drop in rent prices, which will eventually pull down shelter inflation. Sternlicht estimated that the impact of lower rents would show up mid-year, which could show major progress on the Fed's inflation fight, as housing prices account for around a third of headline CPI. However, he warned that high interest rates could overtighten the economy into a severe recession, and predicted a severe downturn ahead for the US economy.