Federal Reserve Chairman Jerome Powell’s press conference yesterday made it clear that stability and growth are still the Fed’s goals as the Biden administration completes its first week.

“We’re going to be patient. Expect us to wait and see and not react if we see small, and what we would view as very likely to be transient, effects on inflation,” said Powell.

Despite efforts at a smooth transition, any change of administration creates unknowns. However, Federal Reserve Chairman Jerome Powell and newly confirmed Secretary of the Treasury Janet Yellen have stated they do not believe the recent increase to the 10 year treasury, the highest its been since March, is here to stay and rates will continue to stay low.

For now, Powell has stressed the importance of staying the course with low interest rates, which many expect as lenders continue to grow more comfortable lending and further quantitative easing becomes possible. “If inflation were going to move up in ways that are unwelcome, we have the tools for that and we will use them,” said Powell in a recent interview presented by Princeton University. “When the time comes to raise interest rates, we’ll certainly do that, and that time, by the way, is no time soon.”

“The confirmation from the Fed Chair and Treasury Secretary gives investors confidence that rates will stay low for the foreseeable future,” said Matt Dzbanek, Director, Capital Services, Ariel Property Advisors. “Even though Powell is not looking to raise rates in the near future there is a real possibility that his hand may be forced in order to balance the economy.”

The new administration will likely bring a great deal of changes amid a greater deal of unknowns from rising Covid-19 rates across the country and more virulent new strains to rising unemployment and ongoing stagnation in retail, hospitality and entertainment markets. The vaccine rollout has not been without adversity but with a summer distribution looking likely for the non-at-risk public, confidence is growing and the major question mark for President Biden and the economy is how effective the new $1.9 billion stimulus package is going to be.

“During the past few months, there has been chatter amongst the industry about all the dry powder on the sidelines,” said Dzbanek. “The pandemic has seen an inflow of alternative lenders gaining market share and now, as prices continue to adjust, larger players are becoming more aggressive as the landscape continues to stabilize. We are seeing significantly more activity now than even a few months ago.”

On top of all the other changes in the market, New York is now 18 months into the Housing Stabilization and Tenant Protection Act. At this point, buyers, sellers and lenders have a far better sense of the market under the drastic new rules that restrict owners, particularly those in the affordable housing sector. As we have new price discovery in that space coupled with the moratorium on foreclosures and residential evictions set to end on May 1, New York can expect to see growing activity in the multifamily market, particularly if interest rates remain historically low.