Navigating the Rate Cuts: What Lower Interest and Inflation Mean for Construction Projects

As the Federal Reserve signals its first rate cut since 2020, commercial construction firms are closely watching the potential long-term impacts. The central bank reduced rates by 0.50% yesterday, and is expected to make more cuts gradually over the next year, with the possibility of rates falling to 4-4.5% by the end of 2025. Combined with Truflation’s 1.12% inflation rate, these reductions could transform construction financing and project costs. Navigating Federal Reserve rate cuts, however, uncertainty persists in the broader economy, particularly in the labor market, adding a layer of complexity to the outlook.

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