Report | Economic insight for August 16, 2017
Inflation data for July failed to support the case for another rate hike. And unless faster wage growth can eventually translate into stronger spending and price increases, we don't expect a third rate hike in 2017 to occur. While one more rate increase of 25 basis points would mean little for commercial real estate (CRE), there is a bigger question concerning inflation and CRE. One of the key benefits of owning CRE is that it serves as a partial inflation hedge. In a low inflation world, that benefit is somewhat diminished. But CRE still provides investors with diversity and attractive current income. This assumes that the debt ceiling is raised in a timely manner and we avoid economic chaos this fall. But last week's heated rhetoric between the U.S. and North Korea threw a wrench into the mix, roiling financial markets in a way we haven't seen for months.
To access the report, simply complete the form.