WASHINGTON, DC—The Federal Reserve Bank endedits quantitative easing program last week on asatisfied note. The program accomplished what it was supposed to,the Fed said: it stabilized the economy during a time of upheavaland significant unemployment.
In truth, though, the impact of the program will be with us forsome time. The Fed has only stopped buying these securities; itstill holds a massive amount on its books. The bottom line forcommercial real estate: it will be business as usual in terms ofrates and policies for at least the next six months.
"There has always been a concern in the real estate industryabout the impact on interest rates when the QE program ends,"Ann Hambly of 1st ServiceSolutions, tells GlobeSt.com. "We now know that the end ofthe QE program does not equal a rise in the Fed Funds rateimmediately, according to the announcement by the FederalReserve."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
