CoStar News | The Federal Reserve implemented another 25-basis-point rate cut, bringing the federal funds rate to 3.75%–4%, but Chair Jerome Powell emphasized that further easing in December is far from guaranteed. While consumer spending and business investment show resilience, policymakers remain divided—especially with economic data obscured by the government shutdown.
Hotel owners and lenders welcomed the cut, noting that lower borrowing costs provide needed relief and the potential to unlock new deals, refinancing opportunities, and strategic growth. Still, analysts warn that uncertainties around inflation, labor market softness, and reduced economic visibility create a challenging environment. For commercial real estate, experts—including Peachtree Group’s Greg Friedman—predict a “higher-for-longer” reality for financing costs even as selective capital prepares to take advantage of well-structured opportunities.