WASHINGTON, DC-The commercial real estate industry knew theFederal Reserve Bank was going to end its $85billion-a-month bond buying program sooner or later. The reactionof the markets in spring when the Fed said the time was nigh,though, left many anxious at how it would be handled and whetherthe economy was strong enough to absorb it.

On Wednesday, the Fed put its cards on the table and the CREcommunity saw nothing to cause dismay. Briefly, the Federal Reservehas said it will scale back the program by $10 billion a month,starting in January 2014. Its asset purchases will now consist of$35 billion in mortgage-backed securities and $40 billion inlonger-term Treasurys.

The markets responded with unadulterated joy at this modestplan, with the S&P 500 posting its biggest gain in months.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.