Fed Rate Cut and Market Shifts: What’s Next? The Fed recently cut interest rates by 25bps to 4.50%-4.75%. Officials cite a stronger economy and balanced inflation/employment risks as reasons for caution. Here are some of our key takeaways from the recent announcement: 1. Fed may slow future rate cuts leading to revised market expectations in 2025. 2. The Treasury market is reacting to future inflation expectations and political uncertainty. 3. Agency CMBS demand is rebounding, with interest in quality, low-leverage securities. 4. In the Agency CMBS market, demand for high-quality Fannie Mae DUS & Freddie Mac K securities is picking up, with spreads marginally tighter post-election. Connect with our team: https://lnkd.in/ekvwW9gw #Fed #InterestRates #CMBS #Economics #MarketTrends #WeAreWD
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A couple of weeks ago, the Fed did as was expected and kept the overnight rate unchanged. No surprise there. The Fed cited elevated short-term inflation risks, and they’re maintaining their cautious stance, which means, interest rates will be higher for longer, Marcus & Millichap’s John Chang shared this week during his firm’s trends analysis video. To read more about the signs of recession as the Fed keeps the rates elevated, click here: https://buff.ly/3K6Xd4E. #thekinggroup #marcusmillichap #california #longbeach #realestateinvesting #CRE #multifamily #realestateinvestor #financefriday #commercialrealestate #federalreserve #thefed #inflation #rates #JohnChang
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Hold on to your caps 🧢, because the latest inflation data was released and it’s a game changer. The initial projections were absolutely smashed by the actual data, and interest rates felt the boom. You can expect some serious turbulence over the upcoming week. The probability of a first rate cut by the Fed decreased and was pushed back. Most experts think rate cuts will now possibly begin in July. The original train of thought was that the Fed will cut rates 3 times this year, but now that number has dipped to 1.9 cuts due to the hot data. We should get some more clarity when the Fed speaks on April 30th-May 1st. #rates #cuts #ratecuts #thefed #cpi #inflation #market #markets #mortgagemarket #finance #homefinance #homebuying
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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FED: will cut once or twice this year?: The Federal Reserve (Fed), the central bank of the United States, has signaled that it may cut its benchmark interest rate once this year. The benchmark rate is currently held steady in a range of **5.25% to 5.5%**, which is the highest level in more than two decades. The decision to cut rates is influenced by various factors, including inflation and economic growth. Recently, the US Consumer Price Index (CPI) inflation data came in lower than expected. This could be one of the reasons why the Fed is considering a rate cut. Lower interest rates can stimulate economic growth by making borrowing cheaper, which encourages spending and investment. However, the Fed has also kept the door open for two rate cuts this year. This means that while they are currently planning for one rate cut, they are not ruling out the possibility of a second one. The decision will likely depend on future economic data. For instance, if the economy shows signs of slowing down more than expected, the Fed might decide to implement a second rate cut to stimulate growth. Investors currently see two rate cuts this year, with better-than-even odds of an initial reduction in September, according to futures. So we will see, as always Mr. Powell is cautious, and talk about next inflation projections as conservatives.- #Powell #inflation #USA #FED #markets #wallstreet
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A bit of contrarian fact. The Fed lowered rates by 1/2%, yet the 10-year treasury notes have been rising every day. This counterintuitive trend challenges the expectation of declining rates. This divergence may not bode well for a stable economy. 🔁 Higher bond yields indicate a belief that borrowing costs will remain higher, and a belief in big Fed rate cuts point to a likely decline in borrowing costs. Something is very wrong. #treasury #interest #Fed #rates
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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Financial markets were everything but flat in August as incoming data prompted significant re-assessments of the outlook and Fed policy. #Inflation, however, looks to have been remarkably normal. Our US PriceStats rose just over 5bps (NSA) on the month; in line with August averages seen over the past decade (7bps). This is marginally higher than the initial consensus estimate, which has a 5bps fall (nsa) and a 20bp mom rise (sa). For all the volatility in labor market data, inflation readings over the summer have been remarkably benign, normal and consistent with a green light for Fed easing. #STTInsights
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