Fed Interest Rate Decision: The US Federal Reserve announced its decision on Wednesday, leaving the benchmark interest rates unchanged at 5.25%-5.50% for the seventh consecutive meeting, aligning with Wall Street estimates.

FOMC Meeting Outcome: The Federal Open Market Committee (FOMC) ended its fourth policy-setting meeting of the year on June 12, unanimously voting to hold the policy rate at a two-decade high, with only one rate cut projected for 2024, depending on economic data.

Data-Dependent Projections: Fed policymakers indicated that future rate decisions are contingent on economic growth and inflation trends, frequently revising their plans based on evolving conditions.

Inflation and GDP Forecasts: The Fed raised the US core inflation forecast for 2024 while maintaining previous GDP projections.

May Consumer Price Data: US consumer prices remained flat in May compared to April, reducing the annual inflation rate to 3.3% from 3.4%. The core CPI, excluding food and energy, rose at an annual rate of 3.4%, the slowest pace in over three years.

Policy Rate History: Since March 2022, the Fed has raised the policy rate by 5.25 percentage points in response to rising price pressures. The rate has been on hold since July 2023 to anchor high inflation and steer it towards the 2% target.

$12,000,000 Refinance of an Industrial Warehouse in Phoenix, Arizona.

Jacob Lee and Thomas Rudinsky of PSRS arranged the $12 million refinance of an industrial warehouse in Phoenix, Arizona. The property is a multi-tenant industrial warehouse with over 250,000 square feet. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a non-recourse, fixed-rate five-year loan and a step-down prepay with a rate in the low 6s.

$16,300,000 Refinance of a Medical Office Campus in Santa Barbara, California.

Seth Ludwick of PSRS arranged the $16.3 million refinance of a medical office campus in Santa Barbara, California. The subject property is a 61,664-square-foot, single-tenant medical office campus with ample parking at 225 spaces. Financed with bank execution, PSRS provided its borrower with a non-recourse 10-year loan term and 30-year amortization with no reserves.

$6,350,000 Acquisition Financing of a Multi-Tenant Office Property in Carlsbad, California.

Pasha Johnson, Trevan Swierczewski, and Daniel de Leon of PSRS arranged the $6.35 million acquisition financing of a +/- 52,000 square foot multi-tenant office property located within the coastal market of Carlsbad, CA. Despite recent negative headlines surrounding office properties, PSRS generated a competitive lending landscape led by one of our correspondent Life Insurance Companies.