This is a narration of our weekly Rent and Operating Trends Report.
The Personal Consumption Expenditures Index (PCE) increased unexpectedly last month, which has given economists doubt that the Fed is finished with their current monetary tightening campaign. James Bullard, President of the St. Louis Fed, mentioned last week that he sees the need for two additional interest rate hikes to slow down inflation. On the other hand, Neel Kashkari, President of the Minneapolis Fed indicated that the FOMC should pause its rate hikes in June but cautions that a pause may not mean a complete end to the current tightening cycle. There are still three weeks until the Fed’s next meeting, and the economic climate may shift, however, there is growing belief that interest rates could still go higher. I was firmly in the camp that rates would remain unchanged for the rest of this year, but in the wake of the last PCE report, I believe there will be at least one more rate hike at some point in 2023
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