The Federal Open Market Committee has announced an increase in the target federal funds rate, following its meeting Sept. 15–16. The FOMC decided to raise the target range for the federal funds rate by 25 basis points to a range of 3.75 percent to 4 percent, in support of the Federal Reserve’s dual mandate.
“The increase reinforced that the Fed remains focused on inflation and is willing to maintain restrictive policy even as higher borrowing costs weigh on rate-sensitive sectors,” said Andrew Koller, research analyst and adviser at WCRE/CORFAC International in New Jersey. He noted that, from a commercial real estate perspective, the significance is more about what it signals for the duration of the higher-rate environment. “Borrowers and investors have already spent years adjusting to elevated capital costs, and another increase further delays the relief many may have expected from rate decline in late 2025 and into 2026,” added Koller.
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