Fed Rate Hike Likely on the Horizon

All signs seem to point to a December interest rate hike. On Wednesday, the Fed revealed an official account of its October policymaking meeting, where most officials said they believe the economy will be ready for higher rates by the end of the year.

Short-term interest rates have been held near zero since December 2008 as part of an effort to stimulate economic growth. But with officials more confident in a healthy economy—and the threat of inflation looming—they believe now is the time to start raising rates at a gradual, and even glacial, pace, the New York Times reports.

Since the October meeting, data supporting a rate hike has remained strong, including the addition of 271,000 jobs in October. Meanwhile, financial markets had already raised the odds of a December rate increase to about 66%.

William C. Dudley, the president of the Federal Reserve Bank of New York, said investors appear to be ready for the Fed to start normalizing rates. He says this would probably be "the most well-advertised, discussed, thought-about, mused-over" rate increase in history.

Officials who oppose the rate hike worry that a global downturn could cause a setback in the economy. Those in favor one say delaying a rate hike could signal a lack of confidence in the economy. [NYT]

Continue reading this story with a free account

Log in or register
Related Topics: Fed , Fed rate , William C. Dudley
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Spirit Christmas Unveils Plans To Grow Store Count This Holiday Season

Hurricane Isaias Puts More Than $40B In Multifamily Property In Its Path

Braemar Inches Closer To Ashford Breakup With $372M Hotel Sale

Transformers: Yet Another Data Center Power Infrastructure Supply Chain Bottleneck

Proposed EPA Rule Change Could Cut Months From Timelines Of Projects Near Wetlands

Rates, Rents And AI Risks: Peter Linneman's Warning For CRE

Heitman, Andover Target Self-Storage With New Investment JV

U.S. Multifamily Market Regaining Its Balance As Yearslong Supply Wave Tapers Off

Clarion Hires Prologis Executive To Lead Power Strategy

Why Data Centers Need To Embrace 'Responsible Resiliency'

The Bridge-To-Bridge Bet Is Holding Off CRE's 'Day Of Reckoning' — For Now

Augmentation, Not Replacement: How AI Platforms Are Streamlining Front Desk Teams