The current Goldilocks economy—not too hot and not too cold—is helping to keep the bears from emerging in the commercial real estate sector. In a move aimed at holding on to that warmish balance, the Fed confirmed during its May 1 meeting that it would not change rates. That move is expected to fuel another strong year of transaction activity. At the same time, it is stirring speculation about what action the Fed might take in the fourth quarter.
The Fed has become more dovish on rates, essentially changing its policy from one where it was likely to raise rates two or three times in 2019 to a more neutral position, and capital markets have gained confidence from that shift. . . . more