Where is inflation going? Market analysts explore hot question

<p><strong>In-depth episode:</strong></p> <p>Thirty Capital CEO Rob Finlay was asked by a listener for the team’s assessment of inflation, and how much of a concern it will be in coming months.</p> <p>Analyst Jeff Lee notes that the answer listeners are looking for will have many variables, and depend on “where you are in your commercial real estate project or loan life cycle.</p> <p>“Truthfully, if we had a crystal ball and knew exactly, I don't think any of us would be on this call . . . we might be on CNBC making some bigger, bolder predictions!”</p> <p>“It’s a very important question and there’s a big question mark over it,” he adds.</p> <p>Analyst Jay Saunders points out that Jerome Powell, Chair of The Federal Reserve, has been less dovish about inflation. However, more recently, Powell seems to be leaning towards inflation being transitory.</p> <p>Despite the concerns about inflation, the market is seeing ten-year swap rates and ten-year treasuries for 1.5 percent. </p> <p>“Clearly there is a disconnect between anticipated inflation and interest rates. If you’re a borrower and have concerns about inflation you sit on the opposite side of the table from investors. If you really have inflation concerns, you would want to be a fixed rate-borrower,” says Jay.</p> <p>He reiterates Rob’s position - which is that a borrower should lock up a loan for low and long, and ride out that wave of inflation. If you’re an investor and you're concerned about inflation, you want to loan out on a floating rate basis.</p> <h1>Inflation may continue for a while</h1> <p>Meanwhile, Analyst Jason Kelley says that he thinks inflation is going to continue on for a while. He notes that the Fed is in a difficult position when it comes to inflation.</p> <p>“Their mandate is to keep inflation inflation down, but to keep the economy on a good path. So If they start raising rates too much, they'll crash the economy, but if they don't raise rates enough, inflation is going to keep going rampant. It’ll be very interesting to see where thing