the lead indicator
The Federal Open Market Committee recommitted to its near-zero interest rate policy at its meeting in late January. Building on last summer’s announcement of a specific time horizon for its current level of accommodation, the committee pushed the expected date for tightening from next year to late 2014.
Why the change? Based on the Fed’s current assessment, economic and financial market conditions warrant a historically low Fed Funds target rate for at least another two years. The implications for commercial real estate are difficult to overstate given the critical role that low interest rates have played in the sector’s recovery.
The Federal Reserve today announced that it is ready to provide additional monetary-policy support to the economy. In a statement announcing the Federal Open Market Committee’s decision to leave interest rates between 0 percent and 0.25 percent, the Fed said that inflation is lower than the central bank is comfortable with and output Read More
On Friday, Federal Reserve Chairman Ben Bernanke gave a speech in Jackson Hole, Wy., in which he noted that the economy is in worse shape than it was at last year’s annual conference. “The [Federal Open Market Committee],” he said, “is prepared to provide additional monetary accommodation through unconventional measures if it proves Read More