As many expected, the Fed cut interest rates today, now at 4.25%-4.5%, but signaled slower reductions ahead. While inflation may have eased since mid-2023, the pace has been uneven—core prices rose 2.8% over the year through October. The Fed also raised its 2025 core inflation forecast to 2.5% and lowered its unemployment projection to 4.3%. With rate cuts slowing and inflation lingering, what’s next for the CRE markets as we approach 2025?
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As many expected, the Fed cut interest rates today, now at 4.25%-4.5%, but signaled slower reductions ahead. While inflation may have eased since mid-2023, the pace has been uneven—core prices rose 2.8% over the year through October. The Fed also raised its 2025 core inflation forecast to 2.5% and lowered its unemployment projection to 4.3%. With rate cuts slowing and inflation lingering, what’s next for the CRE markets as we approach 2025?
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026 What happened to the "Fed pivot” ?
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026
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SUMMARY OF FED DECISION (20th/March/2024): 1. Fed leaves rates unchanged for 5th straight meeting. 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026 What happened to the "Fed pivot?"
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting. 2. Fed continues to expect 3 interest rate cuts in 2024. 3. Core PCE inflation forecast for 2024 raised to 2.6%. 4. Fed says inflation "has eased but remains elevated". 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2%. 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026.
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SUMMARY OF FED DECISION (3/20/24): 1. Fed leaves rates unchanged for 5th straight meeting at 5.50% 2. Fed continues to expect 3 interest rate cuts in 2024 3. Core PCE inflation forecast for 2024 raised to 2.6% 4. Fed says inflation "has eased but remains elevated" 5. Fed does not expect rate cuts until "greater confidence" inflation is moving to 2% 6. Fed now only sees 2 rate cuts in 2025, fewer cuts in 2026.
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