Madison International's Ronald Dickerman

NEW YORK CITY—“The Trump election really bought the Fed a lot ofcover,” says Ronald Dickerman, founder and president of MadisonInternational Realty. He notes that prior to the Federal Reserve'sdecision Wednesday to implement its second increase in the federalfunds rate since 2008—a year after implementing the first suchincrease—yields on the 10-year Treasury had increased around 100basis points post-election. “Most commercial real estate loans arekeyed more to the 10-year than the federal funds rate,” hesays.

“Before the election, the Fed was walking a tightrope, becausethey were trying to decide whether they could raise rates or keepthem the same, and everyone knows this lower-for-longer environmenthas gone on much longer than people expected,” Dickerman “Now the game has changed, and I don't think the factthat the Fed raised the rate another 25 bps was the big story.”

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.


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