Economy Watch: Boston Fed Head Worried About CRE Bubble
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Real GDP Growth, Source: BEA, Haver Analytics, Credit: Federal Reserve Bank of Boston, Exploring the Economy’s
Progress and Outlook
Speaking before the Greater Concord Chamber of Commerce in New Hampshire last last week, Federal Reserve Bank of Boston President Eric Rosengren noted a number of things of interest to commercial real estate, including vague statements (but no more than that) about the timing of an interest rate increase. Gradual normalization of interest rates is warranted, if incoming economic data justifies it.
He further made the point that the market remains too pessimistic about the fundamental strength of the U.S. economy. That means the likelihood of removing monetary accommodation (raising rates) is higher than is currently priced into financial markets, he posited…
