The Federal Reserve maintained the federal funds rate at 3.50% to 3.75% today. Chair Kevin Warsh signaled a hawkish pivot during his first policy meeting as head of the central bank.
Updated economic projections show officials no longer expect interest rate cuts in 2026. This shift removes the single rate cut previously forecasted by policymakers.
Higher-for-longer borrowing costs threaten housing market affordability. The revised outlook pressures commercial real estate valuations and REIT dividend attractiveness relative to bonds. Investors await Chair Warsh’s first press conference for insights into inflation and long-term policy.