This is a narration of our weekly Rent and Operating Trends Report. While the fundamental underpinnings of the U.S. economy did not change as the result of last week’s speech from Fed Chair Jerome Powell, the remarks, and the stern and straightforward tone with which he delivered them indicates that the economy is likely in for a challenging slog. Contrary to typical Jackson Hole Economic Symposium speeches, where Fed Chair’s often discuss at lengths the different aspects of the economy, Powell’s talk was brief and only focused on the Fed’s role in reducing inflation. He laid out a course of action that will likely result in continued steep interest rate increases, and he acknowledged the need for the Fed to raise rates well above what they see as a neutral level. Powell indicated that economic activity, including employment growth may suffer as a result, but that a return to a normal inflationary environment was not only the Fed’s number one priority, but also a necessity to restabilize the economy. Tune in to find out more information on multifamily dynamics during the week of August 28.
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