1. INTEREST RATE DECISION The Federal Reserve held rates unchanged at 4.25-4.50% at its January meeting, on par with market expectations. Solid labor market performance and somewhat elevated inflation kept officials neutral as they continued to assess the impact of the three consecutive rate cuts made at the end of 2024. A slight adjustment in …
1. INTEREST RATE DECISION The Federal Reserve cut rates by another 25 basis points in December, its third consecutive rate cut as policymakers move into a more accommodative monetary stance as inflation cools and labor market performance comes more into focus. The federal funds rate now sits at 4.25%-4.50%, while the “dot-plot”, which indicates FOMC …
1. ECONOMIC ACTIVITY REMAINS STEADY According to the October 23rd release of the Federal Reserve’s Beige Book Summary of National Economic Activity, activity has changed little in nearly all districts since early September, though two districts have reported modest growth. The latest Beige Book provides an additional glimpse at how the US economy has performed …
1. FED INTEREST RATE DECISION On June 14th, The Federal Reserve announced a pause in interest-rate increases as it assesses the effects of its tightening efforts on the economy, holding the target federal funds rate at 5.0-5.25% while signaling the likelihood of further rate hikes this year. The decision was unanimous and followed ten consecutive …
1. Q3 GDP & CONSUMER SPENDING REVISED UP The Bureau of Economic Analysis reported an upward revision to Real GDP in the third quarter of 2022, mainly reflecting a revised total in U.S. consumer spending. The latest estimate shows a 3.2% annualized increase in Real GDP during Q3 2022, revised up from the previous estimate …
1. 2024 US MULTIFAMILY OUTLOOK According to a recent forecast by Yardi Matrix, the US multifamily sector faces a mixed outlook in 2024. While apartments have performed relatively healthily during the Fed’s ongoing tightening cycle, sector valuations will face challenges from a wave of supply coming online alongside rapid growth in costs and mortgage rates …
1. FOMC INTEREST RATE DECISION On December 14th, the Federal Reserve’s policy-setting committee raised their target Federal Funds Rate (FFR) range by 50 basis points to 4.25%-4.50%, slowing their speed of rate increases after four consecutive 75 basis point hikes — an apparent response to evidence of slowing inflation. In their statement accompanying the FOMC …
1. INFLATION AND FALLING ENERGY PRICES The latest PCE price index rose in line with consensus expectations in October, but the divergence between the core and headline numbers reflects the disinflationary impact of falling energy prices in recent months. According to the Bureau of Economic Analysis, the core inflation rate, which excludes food and energy …
1. CPI INFLATION The Consumer Price Index (CPI) fell to 3.2% year-over-year in October, 50 basis points below the September reading, and follows two consecutive increases in annual CPI. Monthly CPI was flat, marking the first time the economy has experienced no month-over-month inflation since July 2022. Further, the annual increase in CPI in October …
1. WEWORK BANKRUPTCY, CRE IMPACT On November 6th, co-working trailblazer WeWork filed for Chapter 11 bankruptcy, bringing additional unease to an office sector battered from the residual effects of the remote-work revolution. Over the previous decade, including before the pandemic, many office landlords around the world looked to the co-working giant as the future of …