WASHINGTON, DC–As widely expected by the market, the Federal Reserve raised the federal funds rate to a range of 1.25% to 1.5%. It is the third hike this year but relatively speaking interest rates remain historically low.
Again, as expected, the reasons cited for the increase centered around the solid economy. “The labor market has continued to strengthen and … economic activity has been rising at a solid rate,” the Federal Open Market Committee said in a statement.
More rate increases will be coming; Fed policy-makers have made clear that they plan to raise the interest rates three more times next year and then twice the following year.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
