It wasn’t too long ago that persistently low inflation was keeping Federal Reserve officials up at night. Now, in a year where everything has changed, so too has the reason for Jerome Powell’s insomnia.
Prices are rising, and in many corners of the economy, they are doing so in attention-grabbing ways. Lumber prices are up a remarkable 89% from a year ago, and energy prices are up 25%. It has been a decade since the last inflationary debate, and a generation since the Central Bank last lost control of price stability.
With the recovery well underway and an unprecedented amount of fiscal stimulus still making its way through the economy, it is no longer just a fringe cohort of pundits thinking that the US may, once again, be heading toward a period of sustained higher inflation.
In this brief, we will explore the potential for the US moving into a higher inflation environment and how the commercial real estate sector may fare if the Inflation Hawks are proven right. Download it HERE!