New York Fed President Says U.S. Economy Has A Long Run Left
The U.S. economy should move forward strongly as the tight labor market drives inflation toward the Federal Reserve’s 2% goal, according to New York Fed President William Dudley.
“I’m actually very confident that even though the expansion is relatively long in the tooth, we still have quite a long way to go,” Dudley said in a speech in Plattsburgh, New York, Bloomberg reports. Dudley said that while inflation is a bit low, the tight labor market should help push up wages and inflation. Bloomberg said his comments echo those made by Fed Chair Janet Yellen after the central bank raised rates earlier this month, when she said she expected the economy to continue its moderate expansion for a few more years.
Commercial real estate leaders share those sentiments when it comes to the current real estate cycle. The market has been experiencing a record run of rising valuations for about eight years, and many experts believe it still has room to grow.
The industry took a hit during the financial crisis, and prices are working their way back up to normal levels — something that is making people nervous, Yardi Matrix Director of Research and Publications Jack Kern said.
“I would say that the economy has been through a very tough wave of slow growth as a consequence of some things that happened in 2007-2010, and we’re just now heading back to what would be an average long-term trend,” Kern told Bisnow in March. “Nothing is headed toward a crash, but nothing is headed toward a huge increase overtime either. It is just general slow changes.”