END OF JUNE ECONOMIC UPDATE
Written by: Cade Polter
What’s in the News
The news has recently been filled with the tragic submersible implosion. The submersible attempted to visit the Titanic but ran into problems and ended up imploding under the pressure of the ocean. Inflation is still hovering around four percent, but the U.S. economy has shown a two percent annual growth which is up from the previous thought of 1.3 percent. The Supreme Court recently voted to end affirmative action in college admissions, and on Friday voted to strike down Biden’s student loan forgiveness plan. This bill would’ve canceled over $400 billion in federal student loan debt.
What's Next for CRE
Interesting developments continue to occur in the commercial real estate industry. Most recently, shut-down Sears retail stores have undergone transformations to become apartments and townhomes. Pairing creativity and adaptability will allow CRE to form a small cushion while continuing to push through an unsettling period. Office valuations continue to plummet post-Covid, showing nearly 30 percent markdowns of value.
Many economists are projecting a recession during the back half of 2023, but for now, the economy continues to give hope towards avoiding a recession. Year to date, stocks are up nearly 15 percent, and the market seems to be entering a bullish phase. A bull market could carry the U.S. through the rest of the year and hopefully help avoid a recession that was seemingly inevitable just a few months back. After seeing SCOTUS voting down the student loan forgiveness plan, it will be interesting to see the Biden administration’s next step. Previously, they have declined to give any sort of backup plan.
Sources: Globe St, WSJ, First Trust, Federal Reserve.