CRE Could Benefit From The Fed Cutting Interest Rates To Near-Zero Levels — If Things Reopen
March 15, 2020 | Cameron Sperance | Bisnow Boston
In an attempt to boost the vulnerable U.S. economy during the coronavirus pandemic, the Federal Reserve Sunday slashed interest rates by a full percentage point to nearly zero.
That could put more cash in the pockets of real estate developers and consumers.
In a series of statements Sunday afternoon, the Fed announced it would cut the federal funds rate from 1.25% to a range between 0% and 0.25%, a historic low last seen during the 2008 financial crisis. The U.S. central bank will also increase its Treasury securities holdings by at least $500B and its holdings of mortgage-backed securities by at least $200B, according to one of the Fed’s statements.
