Fed Signals Rate Cuts as Housing Market Shifts and Corporate Tax Debate Heats Up

September 25, 2024



In this edition of Above the Line, we explore the Federal Reserve's openness to further rate cuts and its potential ripple effects through the real estate market.

We'll see how these monetary policy shifts are influencing home prices and dig into the ongoing debate on corporate tax rates and their far-reaching impacts on the economy. These interconnected trends offer crucial insights for CRE professionals in today's dynamic economic and political environment.

Let's dive in.

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Fed Officials Leave Door Open to Further Rate Cuts
Yahoo Finance
Federal Reserve officials are signaling openness to further interest rate cuts, with some advocating for quarter-point reductions at upcoming meetings. The ongoing debate over the neutral rate and concerns about labor market deterioration are influencing these discussions.

To the Moon! Case-Shiller Home Price Index Hits Another Record High
HousingWire
The S&P CoreLogic Case-Shiller Index for July shows U.S. home prices rising 5% year over year, marking the 14th consecutive month of record highs. However, the pace of growth is slowing, with experts anticipating potential reacceleration as interest rates continue to fall.

Why Should I Care About the Corporate Tax Rate?
Tax Foundation
As the 2024 election approaches, the debate over corporate tax rates intensifies. This article explains why corporate tax rates matter to everyone, not just businesses. It highlights how changes in these rates can impact workers, consumers, and the broader economy, including investment and job creation in sectors like real estate.

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