Long-Awaited Cut Has Positive Implications for Commercial Real Estate and Consumers

The Federal Open Market Committee (FOMC) slashed the the federal funds rate by 50 basis points during its September meeting, setting the lower bound at 4.75 percent. The first cut since March 2020, this decision reflects the Fed’s confidence that inflation is moving sustainably toward 2 percent and its intent to prevent further labor market softness. In August, headline CPI was up 2.5 percent annually, with unemployment sitting at 4.2 percent. With two meetings remaining in 2024, the Fed could lower interest rates further, which would aid investor demand for commercial real estate.

Key Highlights Include:

  • Outlook positive for investors
  • Policy shift could prove vital to Americans’ finances
  • Yet another new benchmark set

Marcus & Millichap’s Full Report:
Financial Markets Research Brief: September 2024