The Federal Reserve is holding interest rate steady, but signaling that uncertainty is rising.

I'm Kathy Fedke and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

The Fed announced on Wednesday that it will keep its benchmark interest rate unchanged. This marks the second

pause this year. Officials also updated their outlook and now project just one rate cut in

2026. That suggests the Fed is looking for more confidence that inflation is fully under control

before they consider lowering rates. The decision comes at a time of growing

global and political uncertainty. Ongoing conflict in the Middle East has raised concerns about

higher energy prices. When energy costs rise, it can increase the cost of transportation,

manufacturing, and everyday goods, which then can add upward pressure on inflation.

Inflation has cooled from the highs we saw in 2022, but it still hasn't reached the Fed's long-term

target. The rising energy prices could make that progress slower. At the same time,

the Fed is also watching for signs that the economy may be slowing, so it's a balancing act, supporting

growth while making sure inflation doesn't rise again. There's also added uncertainty surrounding

the Federal Reserve itself. Fed Chair Jerome Powell said he plans to remain in his role until a successor

is confirmed. However, that process is currently delayed. A Republican senator is

currently holding up the confirmation of President Trump's nominee Kevin Warsh, pending the outcome

of a Justice Department investigation. For real estate investors, this matters. Mortgage rates are

influenced by long-term treasury yields, which tend to move based on inflation

expectations and the broader economic outlook. If investors expect inflation to stay elevated,

treasury yields can rise, and that often keeps mortgage rates higher. That means borrowing costs

may not come down as quickly as hoped, and that could continue

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