Real Estate Spotlight
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
The October FOMC meeting was without any major surprises. As was widely expected, the FOMC lowered the fed funds target range by 25 bps to 3.75%-4.00%. One notable development, however, was the announcement that balance sheet run-off, i.e. quantitative tightening, would come to an end on Dec. 1.
In a nutshell, this means that the Fed will now attempt to maintain the current size of the balance sheet by rolling over all principal payments from the Fed’s holdings of Treasury securities, instead of allowing those holdings to mature. For more on the Fed’s latest monetary policy actions, please see our latest report.