Fed Raises Interest Rates, CRE Shrugs It Off

Federal Open Market Committee of the U.S. Federal Reserve increased its key short-term rate for a third time this year from a range of 1.75% to 2% up a quarter point to 2% to 2.25%.

The FOMC vote to raise interest rates was unanimous. The rate is now the highest it has been since before the panic of 2008 that ushered in the recession, but historically not that high.

"Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Household spending and business fixed investment have grown strongly."

The Fed also signaled that it will probably raise rates again in December, but did not use the word "accommodative" to describe its policy actions. Among Fed tea-leaf readers, that probably means that the Fed will consider slowing down the pace of rate hikes in 2019.

Read entire article from Bisnow here:  Rising Interest Rates