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In this episode of Bisnow Reports, Barings U.S. Head of Real Estate Research and Strategy Dags Chen talks through the rapidly diminishing probability of a soft landing for the economy.

After the Federal Reserve raised rates by 75 basis points again last week — and signaled more hikes are coming — Chen said inflation is the key metric to watch for real estate players hoping to prepare their portfolios for a downturn.

He also broke down the impact on values, as well as similarities and dissimilarities between the current climate and the Great Financial Crisis in 2008. 

“It’s clear that monetary tightening is working, what the Fed is doing is working,” he said. “What we don’t know is what breaks in the meantime. Certainly, I do recognize, and I would even say the firm in general would recognize, that there is a need to establish price stability right now, and pain now is worth hopefully the result that would come about it.”