The Fed reduced its benchmark interest rate by 0.25 percentage points to a target range of 4.25%-4.50%, marking the third consecutive cut this year, with rates down 1 percentage point since September.
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Market Rates
Fed Meeting Update: December
Third Rate Cut of 2024: The Fed reduced its benchmark interest rate by 0.25 percentage points to a target range of 4.25%-4.50%, marking the third consecutive cut this year, with rates down 1 percentage point since September.
Slower Rate Reductions Ahead: The Fed projects only two rate cuts in 2025 (down from four previously forecasted), with the federal funds rate expected to settle at 3.9% by the end of 2025. Inflation for 2025 is now forecasted at 2.5%, higher than prior expectations.
Market Reaction: Wall Street reacted negatively to the Fed’s outlook for fewer rate cuts, with major indices like the S&P 500, Dow Jones, and Nasdaq experiencing sharp declines.
Inflation and Economic Growth: Inflation remains above the Fed's 2% target, with consumer prices rising 2.7% in November. Despite challenges, Fed Chair Jerome Powell expressed optimism about the U.S. economy, noting its resilience and growth compared to other developed nations.
New Monetary Policy Phase: Analysts suggest the Fed is entering a "pause phase," with a slower pace of easing in 2025. The central bank may skip its January 2025 rate meeting for cuts, resuming in March.
Recent Transaction
$2,250,000 Acquisition Financing for a Retail Strip Center in Victorville, California.
FINANCED Victorville Retail
Lender:Credit Union City:Victorville, California Size:11,826 SF Term:Five-year loan, 30-year amortization
Mike Davis and George Gianoukakis of PSRS arranged the $2.25 million acquisition financing for a retail strip center in Victorville, California. The subject property is an 11,826-square-foot multi-tenant strip retail center built in 2007. Tenants include Sherwin Williams, Arrowhead Credit Union, Tuff Shed, and Captain’s Grill. Financed with credit union execution, PSRS provided its borrower with a five-year loan term with a 30-year amortization.
About PSRS Founded in 1972, PSRS is a commercial mortgage banking firm that helps real estate investors of all sizes structure and secure financing solutions that align with their investment goals.
