TAG Industrial Watch: September 23, 2023

For the second time in recent months, the Federal Reserve decided to leave interest rates on bank-to-bank loans unchanged, leaving many to believe that the most aggressive rate hike cycle in four decades is coming to an end. Despite the pause, the market rate on the 10-year Treasury Note leaped to the highest level since 2007 at about 4.5%, up 110 basis points since May despite only a 25-basis-point bump by the Fed during that time. What Fed chair Jerome Powell failed to mention at his press conference, is that the skyrocketing $33 trillion national debt is not only at the center of rising bond yields, but inflation itself.

Throughout history, governments have always tried to increase spending by first raising taxes until public backlash. Then when borrowing from the public runs dry, governments always reach for the printing press (inflation). With the current budget deficit blowing past $2 trillion, bond yields are rising quickly as the government desperately searches for new lenders in the absence of the biggest buyer of Treasuries over the last 15 years, the Federal Reserve. In other words, nothing will stop rates from rising until the Fed comes back and rescues the bond market with more money printing. This means higher borrowing costs today along with higher prices tomorrow. Whether you’re an owner-user considering a sale-leaseback to raise capital for your business or an investor thinking about how to reposition your portfolio to prepare for stagflation, the time is now, the place is here.

I N D U S T R I A L   N E W S

U.S. National Debt Hits $33 Trillion For The First Time
CNBC – September 19, 2023
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The Fed Hits Pause On Interest Rate
Hikes While It Reviews More Data

CNN Business – September 20, 2023
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10-Year Treasury Yield Hits Its Highest Level
Since 2007 As Jobless Claims Decline

CNBC – September 21, 2023
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UAW Strike Day 7: GM, Stellantis Announce
Layoffs As Negotiations Continue

Fox 2 Detroit – September 21, 2023
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Industrial Amenities Are Important, Too
Commercial Property Executive – August 30, 2023
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R E G I O N A L   N E W S

Electric Co-Op To Build $33M Cleburne Facility
Connect CRE – September 13, 2023
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Illinois Secures $2B EV Battery Plant In One
Of State’s Largest Industrial Deals In Decades

Bisnow – September 8, 2023
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Westcore Picks Up Fort Worth Industrial Campus
Commercial Property Executive – August 11, 2023
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Could Mexico Help Texas Become The US’ Largest Economy?
Freight Waves – September 4, 2023
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Westcore Pays Over $1B For 16 Industrial Sites In California
Commercial Observer – September 13, 2023
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