Walker & Dunlop Chairman and CEO Willy Walker has hosted the weekly Walker Webcast for years. Walker has interviewed many guests in this role, from best-selling authors to renowned economists and academicians to high-ranking government officials.

The tables were turned during the Dec. 20, 2023, Walker Webcast when Walker was in the proverbial hot seat with ColRich CEO Danny Gabriel asking questions that had been submitted by the Walker Webcast audience.

“I’ve dodged this bullet for three years,” Walker quipped at one point. “Today, I took it between the eyes.”

The questions ranged from personal observations (greatest fears and drivers, concerns over burnout and commitment to self-care and exercise) to politics (political aspiration and federal budget challenges) to economics (interest rates and institutional capital).

Dissecting Interest Rates, the Federal Reserve and Institutional Capital

When asked where he thought interest rates might head in 2024, Walker’s first response was that he honestly didn’t know. Then he doubled down on his answer.

“I will say there was nothing in the CPI report that said we’re doing the job the Fed wants us to do,” he observed. “As far as killing inflation, it was a standstill month from October to November.” The Federal Reserve kept the current rate as is. But Walker cautioned that unless inflation stayed on the 2% target, “there’s no reason for the Fed to cut rates.”

What about politics? “There are plenty of people saying ‘Hey! We’re headed into an election year, so they’re gonna cut the rates,’” Walker said. But former President Donald Trump put similar pressure on Fed Chair Jerome Powell, and the latter didn’t bend. “I’m not sure why there would be political pressure on Powell to cut rates this time, and he’d go do it,” Walker said.

Another question on the topic focused on what it would take for institutional capital to return to the market. Walker said two words: Rate stability. “The 10-year doesn’t need to be at 3.92% consistently,” he said. “But it needs to be in a band so that people understand where cap rates need to be. Then we can get transaction volume back.” Furthermore, redemptions in Odyssey funds, B REITs and S REITS also need to decline substantially. “They’ve come down significantly but haven’t ended yet,” Walker observed.

Discussing the Political Spectrum

Speaking of politics, one question posed involved Walker’s political aspirations. Walker acknowledged that he loves politics and carefully follows them. He said that he has a passion for the issues and would welcome the opportunity to have an impact.

But a few things prevent them from throwing his hat in the ring.

“I like being liked,” he said, adding that he understood he couldn’t do anything about people who don’t like him. “But the concept that you run for office and know that essentially 50% of the people you represent hate you, I don’t know whether I’ve got the backbone for that.”

Second, Walker enjoys his work. “I love my job,” he said. “I love leading Walker and Dunlop.” He spends much time traveling to meet with employees face to face. “Our entire executive team and all of our managers do an amazing job of maintaining our corporate culture,” he said. “As CEO, I have a large role in that.”

He was also asked if the days of long-term federal budgets were in the past and if the United States is doomed to ongoing budget resolutions instead. To answer this, Walker discussed airline deregulation. Flying from point A to point B at less cost is great. However, “When I was growing up in Washington DC, congressmen lived in DC. Senators lived in DC,” Walker explained. Most of the elected representatives had kids at the same school, and they’d gather socially, whether Democrats or Republicans.

But airline deregulation and the falling costs of flying changed things. Congress gets to fly home each weekend, back to their red or blue districts. “They hang out with their red and blue constituents,” Walker said. “They hang out with their red and blue friends. Then, they return to Washington and hang out with their red and blue caucus members. They stay in their lines.” Walker explained that because of this, elected officials don’t talk about their issues and don’t compromise.

“Commuters in government kill the dialogue, the understanding and the compromise,” Walker said. Then, when it comes to the federal budget, until and unless the Senate, House of Representatives and the White House are controlled by one party, the continuing resolutions will likely continue, he added.

On the Personal Side

One question focused on burnout. Walker acknowledged that the only two doctors he sees are a general practitioner for his annual physical (“I actually get pretty excited about that,” he said) and his orthopedic surgeons, who put him back together when he damages or breaks things. “I clearly don’t do a good job of taking care of myself from that point of view,” he quipped.

Walker pointed out that he felt blessed because he doesn’t consider what he does as work. “I love what I do,” he said. “I love working with people every day; I love engaging with clients.” He added that he gets asked by investors how long he’ll stick around at Walker & Dunlop. “I say until I’m not having fun anymore,” he said. “Right now, I’m having a great time.”

At the end of the webcast, Walker shared a sobering statistic. The suicide rate in the United States had increased exponentially in 2022, according to the CDC. “We can talk about interest rates, capital and inflation, but there are people who have real problems and are really suffering,” Walker said. “Let’s keep them in mind and help them at this time of year. Do that random act of kindness today. Tip someone a little more than usual and watch the reaction.”

On-demand replays of the Dec. 20 Walker Webcast are available through the Walker Webcast channels on YouTube, Spotify and Apple.