Magazine article Journal of Property Management

The Pause That Refreshes

Magazine article Journal of Property Management

The Pause That Refreshes

Article excerpt

Projections for a slow and steady real estate recovery are echoed for the national economy.

"The U.S. economy will be expanding for a long, long time, but at a slower pace," predicted Allen Sinai of Lehman Brothers in May 1995 presentation at the Urban Land Institute. Sinai believes that an aggressive Fed policy to hold down inflation helped slow the economy sufficiently during the second quarter of 1995 to dampen inflation and sustain the recovery. This interpretation is borne out by the 4.2 percent annual increase of gross domestic product during third-quarter 1995, which was fueled primarily by an increase in durable goods sales.

Carl Tannenbaum, director of Treasury research at the LaSalle National Bank, also believes that astute Fed policy helped "tap the brakes" of the economy to keep the recovery on track. Tannenbaum cites the slight pulling back from the 85-percent capacity utilization and 5-percent unemployment figures that triggered fears of inflation in early 1995.

Sinai anticipates that thanks to the second-quarter re-adjustment, economic growth in 1996 will be between 2. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.