Yellen comments on interest rates send Nasdaq tumbling
Treasury Secretary (and former Federal Reserve Chairperson) Janet Yellen perhaps wished she had used less extreme words last night. Ms Yellen stated that interest rates may have to rise to prevent the economy from overheating. However, she couched that by saying the additional government spending was small relative to the size of the economy.
The retreat continued later in the day, with Ms Yellen saying a rise in interest rates was not something she was predicting or anticipating, but the damage was done. Ms Yellen may have been saying to the markets, “I love you,” but they replied, “not the words I want to hear from you.” The tech-heavy Nasdaq slumped nearly 2.0%, the S&P 500 fell 0.80%, with only the Dow Jones catching some cyclical rotation and keeping its head above water. The US dollar spiked higher, and gold fell, but interestingly we can see where all the equity money got parked as US yields actually retreated.
Courtesy of ASB Real Estate Investments The office building at 64 New York Ave. NE.
A handful of big deals closed in April, several buildings have come onto the market, and experts believe that D.C.-area investment sales volume will increase significantly in the second half of this year.
The renewed activity in the capital markets comes as more employers are planning to bring employees back to the office this year, giving investors the confidence to place large bets on the office market s future. The bets that have been placed thus far have been on the safest assets those with long-term, stable tenants but experts see investors beginning to take a closer look at assets with vacancy or upcoming lease expirations that create more risk, but also more opportunity to add value.
Recovery slower among low earners, racial minorities: Powell thehill.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehill.com Daily Mail and Mail on Sunday newspapers.
While finding appropriate historical analogies is always tricky, the current economic environment seems reminiscent of the 1960s, when fiscal spending and monetary growth accelerated to create an environment for sustained inflation in the years to come.