Marcus & Millichap expects the pace of job growth to step back in 2025 due to a continued elevated interest rate climate dampening business expansion.
Although the Fed began reducing rates in September, current expectations call for only two additional rate cuts in 2025, with the overnight rate expected to drop to 3.75%, said Marcus & Millichap SVP and national director of research and advisory services, John Chang. The overnight rate had been expected to drop into the low 3% range just a few months ago.
“Expectations have shifted significantly since October,” said Chang. “Basically, the Fed is being very cautious about inflation risk.”
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.
