Fed cuts key interest rate by 50bps

The Federal Open Market Committee approved a cut of 50 basis points in the target federal funds rate — to a new range of 4.75 percent to 5.0 percent — at its meeting in September, citing an “uncertain” economic outlook, as it moves to balance its goals of high employment and low inflation.

The FOMC “has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” according to a Sept. 18 statement.

While a rate cut was widely expected, the Fed came in at the higher side of the potential range of possibilities, reflecting a bolder action to combat economic weakening. For the commercial real estate industry, this could release some of the pressure on stretched borrowers, but it won’t alleviate all of the sector’s challenges.

According to Anthony Graziano, CEO of Integra Realty Resources, “We expect a flurry of activity on multifam