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Fed signals intent to maintain low interest rates
- March 1, 2021: Vol. 33, Number 3

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Fed signals intent to maintain low interest rates

by Loretta Clodfelter

The Federal Reserve has signaled its intentions to maintain low interest rates in 2021, which is likely to be positive for investors in commercial real estate, notes Ivan Kustic, vice president at MetroGroup Realty Finance.

At the Federal Reserve’s recent Federal Open Market Committee meeting, held in January, the committee made the following statements outlining its position. The Fed’s goal is to promote maximum employment and price stability, and the ongoing public health crisis continues to weigh on economic activity, employment and inflation, as well as pose a potential risk to the economic outlook. The FOMC decided to hold the federal funds rate in the 0 percent to 0.25 percent range and expects to maintain this level in the near future. In addition, the Federal Reserve will continue to increase holdings in purchasing $80 billion a month in Treasury Securities and $40 billion a month in Agency Securities.

The committee reiterated its stance, that in coming to

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