Economic Update - 6.24.22
Economic Update - 6.24.22

Featured topics:

  1. Fed Policy Meeting
  2. MSCI Real Capital Analytics 
  3. Apartment Investment Market Index
  4. Global Supply Chain Pressure Index
  5. Consumers Cut Back On Dining
  6. NAIOP Office Space Demand Forecast
  7. Independent Landlord Rental Performance
  8. NFIB Small Business Survey
  9. Chicago Fed National Activity Index
  10. CMBS Delinquencies


• At its latest policy meeting on June 15th, the FOMC raised the Federal Funds rate by 75 bps to a range of 1.5%-1.75%, its steepest rate hike since 1994. The move follows a May inflation rate of 8.5%.

• The yield on the 10-year Treasury note fell during the week out of fears that an increasingly aggressive Fed could tip the US economy into recession.

• The most recent Summary of Economic Projections forecasts a 3.4% year-end Fed-funds rate, a 150 bps increase from the March-meeting forecast. Officials also cut their 2022 GDP growth outlook to 1.7% from 2.8% in March. Officials see inflation easing in 2023, with an average forecast of 2.7% core PCE, but this forecast has remained unchanged since the initial March rate hike.

• The stock market initially rose after the policy release but fell later in the week as pessimism around tightening’s impact on growth rattled investor sentiment. The S&P 500 finished up 0.2% on Friday but fell 5.8% over the week.