February's job gains appear to validate the Federal Reserve’s cautious approach to lowering interest rates. We do not expect the central bank to begin cutting rates before June.
Roughly 7 in 10 Americans surveyed say they are still concerned about rising prices for everyday purchases, down only slightly from summer 2022 (83%) - when inflation peaked at 9.1%
While core inflation fell in Q4, jobless claims from a week ago were higher than expected. This illustrates the balance of risks that the Fed must consider going forward. As such, we anticipate the Fed will cut the federal funds rate by May.
The Federal Reserve held the federal funds rate at a range of 5.25% to 5.50% yesterday as expected. Additionally, the Fed affirmed that balance sheet reductions would continue as planned.
CBRE expects that the Federal Reserve will hold rates at the current level (5.25% to 5.50%) when it meets next week. Still, today’s report keeps alive the possibility of another rate hike in November or December if inflation continues to increase more than expected.
The U.S. economy will continue to softly expand for the rest of 2023, say the nation's purchasing and supply executives in the Spring 2023 Semiannual Economic Forecast.
Banks have tightened standards and pulled back on lending activity. Will this quiet banking issues?
Inflation is gradually slowing and the economy is showing resilience, making the CRE glass half full or half empty, depending upon your perspective
High inflation levels far above the Fed Reserve’s target of 2% and the consequent tightening of monetary policy, which has been hiked eight times during January 2022 to February 2023, will continue to dampen the household spending and investments in the US, which will negatively impact the economic growth prospects.
The US economy has registered better than expected growth of 2.9% during the fourth quarter (Q4) of 2022. However, influencer sentiment is still negative on the US economy, though it is seizing fear of recession for a few of them. In this context, a significant spike among Twitter influencer conversations around ‘GDP’ related to the US was noticed in the last week of January