September 17, 2015
For the first time in nearly a decade, the Federal Reserve is pondering whether to raise interest rates.
Many economists don’t think rates will rise because of unrest in global markets, especially China. Plus, as well as the U.S. economy is doing compared to other countries, there are still some hurdles. Though unemployment is down, especially in many California regions, salaries haven’t risen all that much. Inflation is also not at the pace many economists want it at before rates increase.
The argument against raising rates, which can be applied to the commercial real estate industry, is the fear of an investment bubble and an overheated economy.
If today’s interest rate decision doesn’t equate to a rate increase, many economists think it will happen in the next few months. And if and when rates do rise, they aren’t expected to increase significantly.