Overview

• The Federal Reserve lowered the policy rate by 25 basis points to 4.00–4.25% on Sept. 17, citing rising downside risks to employment, with median projections signaling potential additional reductions in October and December.
• U.S. equities rallied to fresh all-time highs after the decision, while Treasury yields moved unevenly and bond managers favored the 5‑year “belly” of the curve to navigate policy uncertainty.
• Mortgage rates have eased to 2025 lows in recent weeks, with average 30‑year quotes reported near roughly 6.3%–6.4%, helping spur a pickup in refinancing even as affordability remains tight.
• New governor Stephen Miran cast the lone dissent for a larger 50‑basis‑point cut, highlighting internal divisions as reporting points to heightened White House influence over the central bank.
• Analysts expect easier U.S. financial conditions to draw more capital into global real estate, though they see a more limited boost in mainland China and Hong Kong due to local constraints, and the August PCE report on Friday is seen as pivotal for the Fed’s next steps.