Greysteel Capital Markets Update | December 2019

December 3rd, 2019 by Keeley Byer

The Federal Reserve signaled last month that it was done cutting rates after making its third quarter-percentage-point reduction since July, bringing its target rate to a range of 1.5% to 1.75%. At an annual dinner for the Greater Providence Chamber of Commerce last week, Chairman Jerome Powell said, “monetary policy is now well positioned to support a strong labor market” and the interest rate policy would likely remain, however, if the economic “outlook changes, policy will change as well.” The FOMC meets again on December 10-11 for its final Summary of Economic Projections of the year…

Greysteel Capital Markets Update | November 2019

November 4th, 2019 by Keeley Byer

As anticipated, the Federal Reserve announced it will lower its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75% on October 30. This is the third rate cut this year but the Fed signaled that it plans no further cuts unless it sees “developments emerge that cause a material reassessment.” The Fed expects growth to continue and the job market to remain strong. On November 1, the U.S. Bureau of Labor Statistics reported total nonfarm payroll employment rose by 128,000 in October—economists expected 85,000 jobs—while job gains for August and September were revised up by 95,…

Affordable Housing | Maryland Market Update

October 24th, 2019 by Keeley Byer

Affordable Housing Investments & The Maryland Economy

Greysteel Capital Markets Update | October 2019

October 2nd, 2019 by Keeley Byer

On October 1, the Institute for Supply Management (ISM) reported its index of national factory activity fell to 47.8 in September, its lowest level in over a decade. The 10-year Treasury yield dipped to 1.65% on the news. On September 18, the Federal Reserve announced that it will lower its overnight lending rate by 25 basis points to a range of 1.75% to 2.00%, as trade tensions between China and the United States continue to strain business conditions. The Fed meets again at the end of October and any further rate cut could depend on the U.S. September employment report, set for release…

Fed Rate Cut Strengthens Yield for Commercial Investors

September 20th, 2019 by Keeley Byer

On September 18, the U.S. Federal Reserve announced that it will lower federal funds rate by 25 basis points to a range of 1.75% to 2.00%, as the continued trade war between the U.S. and China, sluggish global growth, and muted inflation clouds the economic outlook. The Fed wrote in a statement, “Although household spending has been rising at a strong pace, business fixed investment and exports have weakened” and “uncertainties about this outlook remain” as factors in its decision to lower the benchmark federal funds rate. The 10-year Treasury rate decreased to 1.80% on the news, down 22…

Affordable Housing | Ohio Market Update

September 19th, 2019 by Keeley Byer

Affordable Housing Investments & The Ohio Economy

Greysteel Capital Markets Update | September 2019

September 4th, 2019 by Keeley Byer

On September 3, the 10-year Treasury rate decreased to 1.47%, down 43 basis points from a month ago and its lowest level since July 2016, after a report on the U.S. manufacturing sector showed a contraction in August. The Institute for Supply Management (ISM) U.S. manufacturing Purchasing Managers’ Index (PMI) fell to 49.1% in August, the lowest reading in more than three years. Treasury rates were already under pressure as new U.S. tariffs on Chinese imports went into effect on September 1. However, President Trump said trade talks with Beijing are still planned for later this month in…