{"id":1004287616,"date":"2018-12-19T20:00:58","date_gmt":"2018-12-20T04:00:58","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004287616"},"modified":"2022-12-09T02:37:40","modified_gmt":"2022-12-09T10:37:40","slug":"fed-hikes-interest-rates-for-fourth-time-in-2018","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/fed-hikes-interest-rates-for-fourth-time-in-2018\/","title":{"rendered":"Fed Hikes Interest Rates for Fourth Time in 2018"},"content":{"rendered":"<p>By Holly Dutton<\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" data-attachment-id=\"1004133938\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/fed-hikes-impact-on-cre\/focus-interest-rates\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png\" data-orig-size=\"800,600\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"focus-interest-rates\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png?w=800\" loading=\"lazy\" class=\"alignright wp-image-1004133938 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/12\/focus-interest-rates-e1545278264320.png?resize=768,576 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>After three previous hikes this year, most recently <a href=\"https:\/\/www.commercialsearch.com\/news\/feds-apply-the-brakes-again\/\">at the end of September<\/a>, the Federal Reserve once again raised interest rates a quarter percentage point, from 2.25 to 2.5 percent. Fed Chairman Jerome Powell announced the rate hike at a press conference Dec. 19.<\/p>\n<p>The move was not unexpected, as many economists and CRE executives had predicted the Fed would hike rates multiple times in 2019. Powell cited a healthy U.S. job market and the economy rising at a strong rate as reasons for the hike, intended to also help tame inflation. Additionally, the bank cut its projected hikes for 2019 from three to two.<\/p>\n<p><em>\u201cToday went pretty much as I thought,\u201d<\/em> said Ryan Severino, chief economist at Jones Lang LaSalle, in a statement <em>to Commercial Property Executive<\/em>. &nbsp;<em>\u201cThey would hike, revise down their forecast slightly, and soften their statement a bit. I think the markets were looking for more than that. It doesn\u2019t really change my outlook \u2013 I still think 2019 will be a more challenging environment for CRE. Even if we assume that one fewer rate hike is good for CRE, it ultimately means that the Fed believes economic growth will be slower than they previously thought.\u201d<\/em><\/p>\n<p>Severino added that the move to hike rates was a smart one by the Fed, even if it proves unpopular to the financial community.<\/p>\n<p><em>\u201cIf the Fed backed off simply to placate public markets a bit (which isn\u2019t their job) they run the risk that things get away from them if the economy stays pretty strong while they aren\u2019t hiking as much,\u201d<\/em> he said.<\/p>\n<p>Spencer Levy, chairman of Americas Research &amp; senior economic advisor with CBRE, <a href=\"https:\/\/www.commercialsearch.com\/news\/cbre-forecasts-solid-2019-for-cre\/\">told <em>Commercial Property Executive <\/em>earlier this week<\/a> that along with trade issues with China, inflationary pressure could be a big factor in the economy in 2019.<\/p>\n<p><em>\u201cThe two keys to watch are inflationary pressures\u2014wage inflation in the monthly jobs report\u2014causing the Fed to act faster, and this trade deal, which are probably the two biggest factors that would precipitate a material upside or downside surprise,\u201d <\/em>said Levy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve Bank raised its benchmark interest rate a quarter percentage point and signaled fewer hikes in 2019, in a move not unexpected by the CRE community.<\/p>\n","protected":false},"author":745,"featured_media":1004133938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21825,23891,21742],"tags":[32808,38329,33556,43391],"class_list":["post-1004287616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-finance","category-national","category-latest","tag-federal-reserve-bank","tag-jerome-powell","tag-ryan-severino","tag-spencer-levy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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