We’re proud to have GRB President and CEO Philip L. Pecora interviewed in the Rochester Business Journal about cooling inflation and the potential for a Federal Reserve rate cut later in 2024.
Of particular note, the article points out that inflation cooled in June for the third month in a row, spurring discussion that the Federal Reserve may consider cutting interest rates in the months ahead. While a rate cut would certainly be welcome, Pecora is still cautious.
“We tell our business clients who are thinking about investing in a new project or equipment or buying an apartment building, for example, you have to do it based on what you know today,” Pecora said. “That’s how we run our own business. We assume rates are not going to change, even though we think more than likely they will fall.”
He also sees residential home buyers facing significant challenges, especially first-time home buyers.
“We all know Rochester has been one of the tightest housing inventory markets in the country,” Pecora said. “It’s been a big, big challenge. Prices have gone up a lot and when you combine the higher prices with the fact that mortgage rates are higher it’s really making housing unaffordable for a lot of folks.”
