A Cut Without Conviction

2025-12-14 09:00:00 ET

Real Estate Weekly Outlook

U.S. equity markets posted mixed performance - while long-term interest rates swelled to three-month highs - after an unusually divided Federal Reserve delivered a third-straight rate cut, but signaled a likely "pause" in the easing cycle. Perhaps the last rate cut under the "Powell Fed" ahead of the end of the Chair's term in May, the FOMC voted 9-3 to lower the federal funds rate by a quarter point to a 3.75% upper-bound. Just two members voted to keep rates unchanged - Goolsbee and Schmid - a modest "dovish" surprise following public commentary from a trio of others - Barr, Musalem, and Collins - indicating reluctance to cut rates. Markets saw hawkish undertones in the updated Policy Statement, Economic Projections, and commentary from Fed Chair Powell, which emphasized lingering uncertainty around the inflation outlook and a lack of conviction that labor markets are indeed softening....

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