Reis in the News
By Al Brooks, JPMorgan Chase | Head of Commercial Real Estate, Commercial Banking
Source: JPMorgan Chase – Fed Cuts Interest Rates to Sustain Expansion
The Federal Reserve lowered interest rates by 25 basis points at its meeting today—bringing the target range to 2 to 2.25 percent. Find out what this means for commercial real estate investors.
For the first time in more than a decade, the Federal Open Market Committee (FOMC) announced today it will decrease the federal funds rate. Federal Reserve Chair Jerome Powell said the rate will decrease by 25 basis points (bps), bringing it to a target range of 2 to 2.25 percent. Today’s move was widely anticipated following a June FOMC press release indicating the Fed’s willingness to “act as appropriate to sustain the expansion.” This was a change of course from previous indications that the Fed would be patient when considering adjustments to its fund target range. Powell’s July testimony to Congress helped to confirm that market sentiment, shifting the question from whether there would be a rate cut to whether the Fed would cut rates by 25 bps or 50 bps.
While it will take some time for the markets to reach a consensus on what this cut ultimately means for the economy, here are three key takeaways for commercial real estate businesses.