Inflation Scenario Seen As Low Risk for Commercial Real Estate Investors

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As the third COVID-19 relief bill made its way through Congress, a new concern dominated conversations among economists: inflation. Massive stimulus packages that more than bridge the current output gap mixed with a 25% increase in the money supply has some concerned over expected inflationary pressure that hasn’t been seen in a generation.

The 10-year Treasury rate has jumped 60 basis points since the beginning of 2021 as new supply from government spending and inflation concerns have rolled through the market. Disrupted supply chain problems internationally could also put pressure on price increases


 

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