This CRE Analyst Says the Fed is Oversteering

The Fed “has pushed us into an inflection point,” according to one industry watcher, and “may be oversteering” as additional rate hikes loom before year’s end.

“I think the Fed may be oversteering,” Marcus & Millichap’s John Chang says in a new analysis. “Think back a year ago…inflation was already rising rapidly but the Fed held to its position that inflation was transitory. They kept their foot on the accelerator with quantitative easing until they started to back off in November…even then, they phased it out over a four-month span. The Fed was holding interest rates down until March of this year. Now they’re swerving in the other direction.”