September Interest Rate Cut Increasingly Probable 

August 5, 2024

NIC Fall Conference  • Economic Trends  • Blog

Economist Diane Swonk to present timely analysis at 2024 NIC Fall Conference 

Interest rates were kept unchanged at the most recent Federal Open Market Committee meeting (July 30-31). But as inflation eases and the labor market slows, an interest rate cut looks increasingly likely in September.  

What will that mean for the senior housing and care market? What other factors are pressuring our sector? What strategies can owners and operators leverage to navigate a quickly changing economic landscape? 

Insights to these questions and more are on the agenda when KPMG Chief Economist Diane Swonk keynotes the main stage at the 2024 NIC Fall Conference (September 23-25) in Washington, D.C.  

The timing of Swonk’s Economic Outlook for Senior Living keynote could not be more salient. The Federal Reserve is scheduled to issue its next interest rate decision on September 18, just days before Conference.  

“This is our attendees’ opportunity to hear the latest take on the Federal Reserve’s actions,” said Ray Braun, president and CEO of NIC. “Ms. Swonk’s presentation will provide context for the factors influencing market trends and investor behavior, helping individuals and businesses make informed decisions.” 

After 10 interest rate hikes since 2022, the central bank is approaching its goal to reduce inflation to 2%. But it has expressed more worries lately about the strength of the job market. 

“The Federal Reserve’s July 31 statement indicated a more balanced approach to interest rate policy taking into account inflation and unemployment,” said Braun. “That suggests they may be more likely to consider rate cuts in the near future depending on what the data says.”  

Just three days later, additional data was released. A weaker than expected jobs report showed a 0.2% rise in the monthly unemployment rate to 4.3%, possibly foreshadowing an economic slump. 

Experts now believe a rate cut in September is inevitable and perhaps the drop could be as much as 50 basis points. The decision will depend on other upcoming metrics such as the August Employment Report.  

Swonk will address the impact of interest rates on the senior living market. Lower interest rates should reduce borrowing costs and interest expenses, boost valuations and encourage more transaction activity and capital expenditures.   

She’ll also take a deep dive into fiscal issues that impact the sector, such as regulatory pressures on regional banks, the flow of debt capital and the private credit market. 

“Attending Ms. Swonk’s session offers a valuable opportunity to gain fresh insights on the economic outlook for the industry,” said Braun.  “By staying informed, industry stakeholders can identify growth opportunities and potential risks.”  

Register here.