The American people finally got some answers from the man charged with changing this insane economy’s trajectory. I’m not promising you’ll like the answers, but they’re there nonetheless.

Yesterday, Federal Reserve Chairman Jerome Powell took the podium in front of Congress. Reading from a prepared speech, he said the plan is to continue raising interest rates until he sees real evidence that inflation is decelerating to its 2% target.

When asked if his methods could spur recession, he remarked, “We are not trying to provoke and do not think we will need to provoke a recession. But we do think it’s absolutely essential” to curtail inflation.

“The events of the last few months around the world have made it more difficult for us to achieve what we want,” he continued. “We’ve never said it was going to be easy or straightforward.”

In reaction, the U.S. stock market – which had been down in early morning trading – made small gains across all indexes. The S&P 500 rose 0.6%. The Dow increased 0.4% or about 121 points. And the tech-loaded Nasdaq added 0.7%.

A forecast by Fed officials released just last week indicated that all 18 members are willing to raise rates to at least 3% by year’s end. Most project 3.25%-3.5%, which would exceed the highest level attained after the 2008 financial crisis by about one percent.

“We anticipate that ongoing rate increases will be appropriate,” Powell stated. He also alluded that borrowing costs had begun increasing last fall in anticipation of Fed action this year. And financial conditions “have now tightened significantly.”

If or when this will have any impact on inflation remains unclear though. As I’ve stated in previous blogs, the Fed has historically been bad at balancing inflation against interest – bad enough to cause a recession or two in the past.

As for right now, Powell is addressing Congress for part two of his testimony. So it should be an interesting day on Wall Street.

More Non-REIT News to Know About 

Since 2018, Juul E-cigarettes have enjoyed a valued position among vaping enthusiasts everywhere. Their sleek design and discreet shape have made them perfect for those who want a quick puff in public bathrooms or parking lots.

Sadly, that’s also made them extra alluring to the adolescent market, spurring a national campaign to crack down on them. A successful one too, it seems, considering the Food and Drug Administration (FDA) scoop just out.

According to insider sources, it’s preparing to order Juul to take its e-cigarettes off the U.S. market. The marketing denial order would end a nearly two-year appeal from the vaping company for the exact opposite outcome.

The decision could drop today. But so far, Juul has declined to comment. No doubt, it’s busy preparing a separate appeal to upend the decision.

Juul sells its vapes in Canada, the U.K., Italy, France, and the Philippines. But the U.S. makes up the vast majority of its revenue.

This bad news is on top of Juul’s business going up in smoke last year. The company reported net losses of $259 million and an 11% drop in sales to $1.3 billion.

Sometimes, a company just can’t catch a break.

The World According to REITs

 Toronto-based Slate Grocery (SRRTF) – owner and operator of grocery-anchored real estate in major U.S. metro markets – has set its sights on the Sunbelt. This high-profile portfolio just acquired 14 properties comprising 2.5 million square feet across the rapidly growing region.

The real estate investment trust (REIT) also entered a joint venture agreement with Slate North American Essential Real Estate Income Fund L.P. This purchase will open its portfolio to high-performing grocery giants like Publix, Ahold Delhaize, Albertsons, and Walmart (WMT).

“This acquisition and joint venture illustrate the value and resources Slate Asset Management brings to all of our managed entities,” said Blair Welch, CEO of Slate Grocery REIT and founding partner of Slate. Moreover:

“Our global reach and track record facilitate these creative solutions for capital and deals that enable the REIT’s continued growth and ensure we are providing the best value to the REIT’s unitholders. We are very pleased to establish this partnership between Slate Grocery REIT and the Slate North American Essential Real Estate Income Fund, which demonstrates confidence from a leading institutional investor in the REIT’s strategy, management, and valuation.”

Even in the height of a recession, essentials like groceries are going to endure price spikes. So Slate could be a great pick if you’re looking for a little diversity in your portfolio.