The Commercial Real Estate Alpha Site

By Cate Chapman, Editor at LinkedIn News

The Federal Reserve maintained its outlook for three interest-rate cuts this year and, as expected, left its key rate unchanged Wednesday at a 23-year high. Some economists had foreseen fewer cuts for 2024 amid a recent pickup in consumer-price growth. But, in a sign of confidence that inflation will resume its downward path, the Fed also projected slightly stronger growth in the economy and prices. It forecast unemployment of 4% by 2025, slightly below a December forecast of 4.1%.

• The Fed’s preferred inflation gauge declined one tick to an annual rate of 2.8% in February, compared with a target of 2%.
• It has held its key rate at an average 5.3% for five consecutive meetings.
• About 70% of traders expect cuts to begin in June, compared with 60% prior to this week’s announcement.