Recently, Federal Reserve Chair Jerome Powell stated that the U.S. economy is in “solid shape,” sparking an important question in the financial world: If the economy is indeed stable and growing, why is there a growing call to lower interest rates?

The talk about the Federal Reserve possibly cutting its base interest rate by 0.5% feels completely off to me. It’s not only unnecessary but a wrong move given where we are right now.

As the economy shows signs of change, investors are closely watching interest rates. We are currently positioned in a unique period where acquiring assets could offer substantial benefits.

As the multifamily construction market experiences a significant slowdown, we are seeing the beginning of a new phase in the rental landscape, marked by an expected rise in rents.

The rise of shadow banking, encompassing financial entities and activities outside the traditional banking system, has had significant implications for the global economy.

Shadow banking refers to financial activities conducted by non-bank entities that do not fall under the same stringent regulatory oversight as traditional banks.

Shadow banking entities have carved out a significant niche within the financial landscape, offering a range of products and services that are integral to modern finance.

This year’s stress tests posed hypothetical scenarios involving a deep global recession, a sharp decline in commercial real estate prices, and soaring unemployment rates.

The rental and housing markets are undergoing significant transformations in 2024, influenced by a blend of economic pressures, shifting demographics, and evolving supply dynamics.

The term “petrodollar” emerged in the 1970s, a decade of significant geopolitical and economic upheaval. Following the dissolution of the Bretton Woods system in 1971, the U.S. dollar was no longer tied to gold, leading to volatility in global markets.

Since 2020, housing prices have surged by an astonishing 47%, a rate that surpasses the pace of the previous housing bubble. This dramatic rise in home prices can be attributed primarily to a significant supply problem exacerbated by current economic conditions.

The commercial real estate (CRE) market is currently navigating turbulent waters, with distress rates hitting new highs. In May the CRE distress rate reached 8.49%, marking the third consecutive month of increases.