Fed lifts benchmark rate 25 basis points in first increase since 2023

The Federal Reserve raised its benchmark interest rate by 25 basis points, its first increase since 2023, with inflation still above the 2% target. ConstructConnect's Michael Guckes said higher short-term and prime-tied credit will lift borrowing costs and may keep marginal commercial projects from going to bid. FMI's Brian Strawberry said the 10-year Treasury, not the overnight rate, drives commercial real estate financing, and a credible inflation fight could pull long-term yields down. Housing and private commercial work are most exposed, while data-center and semiconductor plants are more insulated because much of that spending runs on corporate cash, equity values, or government incentives.