Commercial Property Executive: Federal Reserve Holds Rates as Geopolitical Pressures Persist, Paul Rahimian Weighs In

By Matthew Kaufman | Commercial Property Executive | April 29, 2026

The Federal Reserve has elected to hold interest rates steady at a target range of 3.50% to 3.75%, marking the third consecutive meeting without a change. The decision reflects ongoing economic uncertainty, as geopolitical tensions in the Middle East continue to influence inflation and broader market conditions.

As reported by Commercial Property Executive, the Federal Open Market Committee’s latest decision comes amid rising energy costs tied to the ongoing conflict in Iran, which have contributed to persistent inflationary pressures. At the same time, labor market conditions remain mixed, with job growth concentrated primarily in the healthcare sector.

For commercial real estate, the Fed’s decision to pause is expected to provide short-term stability but does little to alleviate ongoing challenges. Elevated borrowing costs continue to weigh on transaction activity, development starts and refinancing conditions across asset classes. The cost of capital remains significantly higher than levels seen during prior acquisition periods.

Looking ahead, the path toward rate cuts has become increasingly uncertain. While earlier expectations pointed to potential reductions later in the year, geopolitical developments have complicated the outlook and may delay policy easing.

Paul Rahimian, CEO of Parkview Financial, noted in Commercial Property Executive that the ongoing conflict is no longer a short-term disruption but a structural driver of inflation, particularly through its impact on global energy markets. He added that rate cuts are unlikely in the near term unless there is a meaningful deterioration in labor market conditions.

Rahimian also highlighted that potential changes in Federal Reserve leadership could influence future policy direction, including a possible shift toward more coordinated strategies with the Treasury aimed at managing federal debt and borrowing costs.

Parkview Financial continues to closely monitor macroeconomic developments and remains focused on providing flexible capital solutions to commercial real estate sponsors across market cycles.

The full article is available on Commercial Property Executive here