Fed Chair Jerome Powell Suggests More Rate Hikes

Live Offerings

The Diversified Fund II takes the guesswork out of project selection, underwriting, and management. With JKAM’s extensive team experience, you are provided a turnkey investment into exclusive best-in-class private alternative assets ensuring your success through economic cycles.

Recession-proof your portfolio through commercial real estate now.?

Talk with our investor relations team today.

Market Insight

Federal Reserve Chair Jerome Powell spoke before the House Financial Services Committee, stating that the central bank is far from its 2% inflation target and is likely to continue raising interest rates in the coming months. He clarified that the recent break in rate hikes was to allow for further assessment of economic data.

Consumer inflation has slowed from its peak last year but remains too high for the Fed, with the latest Consumer Price Index (CPI) reading at 4% and the central bank's preferred inflation gauge at 4.7%.

The challenge for the Fed is to raise borrowing costs to cool inflation without causing negative growth and a recession.

Despite the fed funds rate hovering in the 5% to 5.25% range, the economy has been more resilient than expected. Some Fed officials anticipate a few more rate hikes in 2023.

Powell assured that a rate "skip" is consistent with forecasts for higher rates, as the level and speed of rate increases are separate considerations.

The Fed will make decisions based on data and the effects of monetary restraint on demand and inflation.

The stock market has reacted negatively to the possibility of more rate hikes, with the S&P 500 on a losing streak. Goldman Sachs strategists warned of a potential recession, estimating a one-in-four chance and suggesting investors consider hedging for protection. They anticipate the S&P 500 could decline by as much as 23% in such a scenario.

AIM Episode #37- "Wealth Preservation Unlocked: Discover Blueprint for Real Estate Success with Michael Episcope"

In this episode of the podcast, we are joined by Michael Episcope, co-founder of Origin Investments, a highly successful fund manager specializing in real estate solutions. With a focus on assisting high-net-worth investors, family offices, and registered investment advisors, Origin Investments has established itself as a top-decile firm in the industry.

Schedule a Call With Our Team Today!

All the best,

JKAM Team