Fed Cuts Prime Lending Rate Once Again
In its second rate cut since late July, the Federal Reserve lowered interest rates by a quarter of a percentage point yesterday amid fears that trade wars are undermining a strong US economy.
Fed Chair Jerome Powell said that despite low unemployment and other upbeat economic indicators "there are risks to this positive outlook."
"Our eyes are open, we're watching the situation," Powell said, further explaining that the Fed would consider another rate cut this year to sustain the economic expansion only "when we think we've done enough."
This sets the Fed's policy interest rate to a range of 1.75 to 2 percent. For the record, not a single official sees the rate falling lower than 1.5 to 1.75 percent through the end of 2022, according to the New York Times.
President Trump has been haranguing the Fed and chastising Powell for weeks on Twitter and in interviews with the media. Despite the cut, Trump launched another shot across the Fed's bow with this Tweet at 2:25 pm eastern time Wednesday: "No guts, no sense, no vision!"
Regardless, this good news for commercial real estate lending and refinancing for now.