Talk of Interest Rate Cuts Boosts the Stock Market, But Don’t Expect a Similar CRE Windfall

“Talk of Interest Rate Cuts Boosts the Stock Market, But Don’t Expect a Similar CRE Windfall” 
Bisnow – July 14, 2019

U.S. Federal Reserve Chairman Jerome Powell indicated last week the central bank could soon cut interest rates for the first time in more than a decade. While commercial real estate typically welcomes rate cuts, economists don’t think it will drastically alter the industry’s growth trajectory. The U.S. economy remains in a good place, but it has weak spots. A prolonged trade war with China, a slowdown in manufacturing, economic uncertainty abroad and inflation below the Fed’s 2% target rate are giving the central bank reason to consider lowering interest rates to combat tepid growth.