{"id":1004741330,"date":"2024-12-18T11:54:35","date_gmt":"2024-12-18T19:54:35","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004741330"},"modified":"2025-01-17T07:24:58","modified_gmt":"2025-01-17T15:24:58","slug":"fed-cuts-interest-rates-in-final-meeting-of-2024","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/fed-cuts-interest-rates-in-final-meeting-of-2024\/","title":{"rendered":"Fed Cuts Interest Rates in Final 2024 Meeting"},"content":{"rendered":"
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Fed Chair Jerome Powell speaks at the Dec. 18 press conference. Screenshot by Gabriel Frank<\/em><\/figcaption><\/figure><\/div>\n\n\n

At its final meeting of the year, the Federal Reserve Open Markets Committee slashed interest rates by another 25 basis points on Wednesday, a move identical<\/a> to its meeting last month. Heading into 2025, the current federal funds rate target range is 4.25 to 4.5 percent, level with the range of December 2022. The current range is a full percentage point down from the peak of 5.25 to 5.5 percent.<\/p>\n\n\n\n

The anticipated move follows a second straight month of rising inflation, which may throw a wrench in the Fed\u2019s plans. The annual rate increased from 2.6 percent in October to 2.7 percent in November, while core inflation has increased from 3.17 percent in July to 3.32 percent last month. <\/p>\n\n\n\n

Mindful of these trends, Fed Chair Jerome Powell underscored the central bank’s neutral approach to its dual mandate of slowing inflation while protecting the labor market, despite the recent indicators. \u201cToday was a closer call, but we decided that it was the best decision towards achieving both of our goals,” Powell said at today’s press conference.<\/p>\n\n\n\n

What the Fed decides to do in 2025 depends on a number of factors, but it will likely cut rates fewer times than anticipated at September\u2019s meeting<\/a>, in part due to persistent inflation, which the committee projects to fall to 2.5 percent in 2025. The median FOMC participant anticipates that the committee will cut twice in 2025, with rates falling to 3.9 percent at the end of 2025, and to 3.4 percent at the end of 2026. At the press conference, Powell said: “We are at or near a point where it will be appropriate to slow the pace of future adjustments. But we still see ourselves on track to continue to cut.”<\/p>\n\n\n\n

Stability, at last?<\/p>\n\n\n\n

With most of the economy\u2019s key indicators proving resilient, some industry experts are optimistic about the state of commercial real estate investment in 2025. \u201cAnticipated interest rate cuts by the Federal Reserve are expected to reduce borrowing costs, enhancing the appeal of real estate investments,\u201d said Carey Heyman, managing principal for real estate at CLA, a consulting firm.<\/p>\n\n\n\n

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READ ALSO:<\/strong> Is This the Start of CRE\u2019s New Growth Cycle?<\/a><\/p>\n\n\n\n

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Others are a bit more cautious in their outlook. In the mind of Tamas Mark, global head of real assets at IQ-EQ, an asset management and administration firm, how investors will fare next year will likely be due more to political events than monetary policy. The chief driver could be policy changes by the incoming Trump administration. \u201cChanges in tax policies, the impact of potential tariffs and a tax decrease might result in higher inflation and interest rate hikes, potentially also slowing down the forecasted rate cuts by the Fed,\u201d Mark told Commercial Property Executive.<\/em><\/p>\n\n\n\n

At the same time, Mark is optimistic about investors\u2019 prospects going into the second half of the decade. \u201cFor now, the U.S.\u2019 strong income growth with tailwinds from decreasing supply creates momentum,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The move could be the Fed’s final rate cut for a while. <\/p>\n","protected":false},"author":3012,"featured_media":1004741388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,23891,21742],"tags":[36252,35492,52532],"class_list":["post-1004741330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-national","category-latest","tag-cliftonlarsonallen","tag-federal-reserve","tag-iq-eq"],"acf":[],"yoast_head":"\nFed Cuts Interest Rates in Final 2024 Meeting - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"The move could be the Fed's final rate cut for a while.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/fed-cuts-interest-rates-in-final-meeting-of-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed Cuts Interest Rates in Final 2024 Meeting\" \/>\n<meta property=\"og:description\" content=\"The move could be the Fed's final rate cut for a while.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/fed-cuts-interest-rates-in-final-meeting-of-2024\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-18T19:54:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-17T15:24:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/12\/Screenshot-282.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gabriel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/fed-cuts-interest-rates-in-final-meeting-of-2024\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/fed-cuts-interest-rates-in-final-meeting-of-2024\/\",\"name\":\"Fed Cuts Interest Rates in Final 2024 Meeting - 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