What April Inflation Data Means for Investors

Written By Marc Nicholson

WILL THE FED CUT RATES IN 2024?​

New CPI Data Shows Inflation Heading Edging Lower

  • CPI dropped 10 basis points in April, and is in the 2% range if shelter inflation is excluded

  • The Fed’s priority now is to balance the risk of higher rates for longer with the persistence of inflation

What is The Federal Reserves Incentive To Cut Rates?

  • Most economic indicators suggest recession risk remains low, meaning the Fed won’t need to cut rates quickly to achieve its growth goals

CRE Markets Are Recalibrating

  • Interest rate expectations are biased depending on tenure in the industry

  • Investors with the most industry longevity have greater insights into market nuances

  • Transaction activity could rise when lenders reduce risk premiums and investors lock in strategies to deploy capita

Sources: Marcus & Millichap Research Services, Federal Reserve

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Marc Nicholson
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