Ventas, Inc. (VTR) Stock Forecasts

Summary

The Federal Reserve wrapped up its latest Federal Open Market Committee meeting yesterday and, as expected, lowered its fed funds target rate by 25 basis points (bps) to the 4.00-4.25% level. This was the first cut in 2025, following five meetings in a row at which the central bank held policy steady after cutting rates three times in late 2024. The decision indicates that the Fed is now less concerned about the impact of tariffs on inflation and more concerned about the employment situation. This change comes in the wake of disappointing payrolls and revisions announcements in recent months, with the unemployment rate ticking higher to 4.3%. Meanwhile, the Fed’s favorite pricing indicator has been relatively stable (but above the bank’s target of 2.0%) for most of the year. The Trump administration has been extraordinarily vocal in its opinions on interest rates, blurring a clear line of independence that has long existed between the White House and the Fed. The White House wants lower rates and the central bank has finally started to head in that direction. We think that the Fed will step up its rate-cutting program and reduce the federal funds rate two more times in 2025 in order to keep the economy expanding. We think both cuts