December 18, 2015
Founder and Chairman of Equity Group Investments Sam Zell shares his opinion on the Fed’s decision to raise interest rates, and it is darker than many of his counterparts views within the CRE industry.
He believes that the interest rate increase came six to eight months too late and will likely result in a recession over the next 12 months. His evidence for such a premonition is attributed to: slowing world trade, manipulated currency, incipient layoffs, and the continued search for global demand. Additionally, the strong dollar is impacting U.S. production, which provides a competitive disadvantage domestically.
If the economy experiences another recession, the biggest fear is that all monetary policies have been exhausted and solutions are not easy to find.