The Fed’s recent change about the short-term interest rates outlook-from ruling out hikes to forecasting two in 2023-, because of the economic recovery, is seen by Principal Global Investors as a factor that will change the investment scenario in real estate. Because the steepening of the yield curve will increase volatility in REITs, will favor the real estate credit market, and the improvement of the economy will benefit the sectors most affected by the pandemic: leisure, travel and hospitality.
Fed shows its talons