It’s been a year of ups and downs for the real estate capital markets—and a year of holds and cuts for the Federal Reserve. In its final meeting of the year, the central bank cut interest rates yet again on Wednesday, marking the third consecutive decrease to the federal funds rate.
Following this week’s Federal Open Market Committee meeting, Fed Chair Jerome Powell announced a 25-basis-point rate cut. That brings the federal funds rate to a range of 4.25 to 4.5 percent. At this level, it is a full 100 basis points lower than the four-decade peak hit in July 2023.Powell explained that key economic indicators backed the decision. The economy is growing and the job market is showing resilience. Recent inflation figures, despite a recent uptick, are still on the right path toward 2 percent, albeit a bumpy one.
