The Federal Reserve raised interest rates Wednesday, threatening to push construction projects that are barely penciling out over the financial abyss.
The central bank increased its benchmark interest rate by 25 basis points, its first hike since 2023. The move comes as inflation runs stubbornly above the Fed’s 2% target rate.
The cut will reduce the viability of some planned commercial projects, said Michael Guckes, chief economist at ConstructConnect, a Cincinnati-based commercial construction data provider.