The Federal Reserve concluded its December 2025 meeting with the Federal Open Market Committee voting to cut interest rates by 25 basis points — a decision with implications for real assets investors. This marks the third consecutive reduction as policymakers aim to support a cooling labor market amid ongoing economic uncertainty, though opinions within the committee were not unanimous, according to Reuters.
The target range for the federal funds rate has been lowered to 3.5–3.75 percent, reflecting continued efforts to balance inflation management with the goal of maximum employment. Chair Jerome Powell noted future policy decisions will remain firmly guided by incoming economic data.
“While the Fed’s rate reductions are a positive signal for commercial real estate markets, markets should recognize that continued deficit spending across developed economies, including the United States, creates a natural floor on how low rates can realistically go. Real estate
