Welcome to the latest installment of The Full Measure with Kevin Hecht—your destination for the most current economic insights and analyses. Catered to real estate appraisers, agents, and other professionals, this monthly blog series helps you navigate the ever-evolving economic environment. Uncover this month’s economic trends and insights—written from an appraiser’s standpoint—in the following economic recap for August 2023.
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Economic recap August 2023
In an ever-evolving economic environment, key aspects such as inflation, employment, and the housing market are undergoing significant changes in August 2023. This post analyzes the recent data and insights, highlighting potential impacts and the overarching market conditions.
Federal Reserve and market metrics in focus
Last Friday’s Jackson Hole Symposium, an annual meeting attended by global economists, central bankers, and policymakers, gave the financial world much to ponder. At the forefront was Fed Chair Jerome Powell, whose remarks sent waves of speculation throughout the market.
Powell did recognize advancements in the battle against inflation, but his tone was noticeably hawkish. In Powell’s own words, “While inflation has receded from its peak – a positive shift – it still hovers higher than preferred. We stand ready to implement further rate hikes as necessary, intending to maintain a restrictive policy until there’s confidence that inflation is on a sustainable decline toward our 2% objective.”
This sentiment isn’t new. Over the past year, the Fed has steadily increased its benchmark Fed Funds Rate, which determines the overnight borrowing rate for banks. Their goal? To temper the economy and mitigate inflation. Their July rate hike marked the eleventh in a series since March 2022, pushing the Fed Funds Rate to a 22-year high. Powell assured that the Federal…