The U.S. Federal Reserve has reduced its benchmark interest rate by a quarter of a percent, marking its first rate cut in nine months. The target range is now 4.00% to 4.25%. The decision reflects a weakening in labor market momentum, rising unemployment, and persistent inflation — despite elevated inflation pressures in certain sectors — which together have shifted the Fed’s outlook.
Looking ahead, the Fed’s median projection anticipates two more quarter-point cuts before the end of 2025. Market and real‐estate observers generally see this move as potentially stimulating commercial and residential deal activity, though with a caveat: other economic uncertainties — such as tariffs, material costs, and policy shifts — may dampen or delay some impacts, especially in housing and real estate financing.