Industry leaders convened with policymakers at this week's Fall Roundtable Meeting to address national policies impacting commercial real estate and the broader economy.

Fall Roundtable Meeting

• The timely discussions focused on bipartisan opportunities in AI, immigration, and permitting reform; as well as tax policy; tariffs and trade relations, persistent inflation and energy costs, and housing supply affordability. (RER’s Fall 2025 Policy Priorities and Executive Summary)

• Permitting reform and electric grid reliability were top of mind throughout the meeting, with members and policymakers emphasizing the urgent need to modernize infrastructure to meet growing energy demand.

• The discussions coincided with a bipartisan letter sent to Congress from 13 governors led by Pennsylvania Gov. Josh Shapiro (D) and Oklahoma Gov. Kevin Stitt (R), urging Congress to streamline federal permitting rules, expand interstate transmission, and accelerate the nation’s energy transition. (PoliticoPro | NGA Press Release, Oct. 28)

• RER Board Chair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate, Blackstone) emphasized connectivity through Roundtable on the Road and member engagement in policy committees. “These touchpoints keep our priorities aligned and ensure we are speaking with one powerful, fact-based voice,” McCarthy said.

• RER President and CEO Jeffrey DeBoer highlighted RER’s positive advocacy efforts around the One Big Beautiful Bill Act (OB3), including preservation of carried interest, permanent Opportunity Zones, and expansion of the Low-Income Housing Tax Credit. “Those outcomes only happen because of sustained, credible advocacy, backed by the expertise and perspectives our members bring to every discussion,” DeBoer said.

Speakers & Policy Issues

Roundtable members engaged in policy issue discussions with the following guests:

• Sen. Michael Bennet (D-CO) (Committees: Finance; Select Committee on Intelligence; Rules; Agriculture, Nutrition and Forestry) discussed bipartisan cooperation on immigration reform, housing affordability, and fiscal policy, calling the nation’s housing situation “an affordability crisis.”

• Sharon Wilson Géno (President, National Multifamily Housing Council) highlighted the Housing Solutions Coalition’s work to educate policymakers on the consequences of rent control and promote data-driven, pro-housing reforms at federal and state levels.

• Rep. French Hill (R-AR) (Chair, House Financial Services Committee; Permanent Select Committee on Intelligence) outlined congressional priorities on capital formation, digital assets, simplifying federal regulation for community banks, and reauthorization of the Terrorism Risk Insurance Act (TRIA).

• Rep. Josh Gottheimer (D-NJ) (Committees: Financial Services; Permanent Select Committee on Intelligence) emphasized pragmatic governing coalitions to advance permitting and immigration reforms while maintaining fiscal discipline and strengthening global competitiveness.

• Ambassador Timmy Davis (Ret.) (Former U.S. Ambassador to Qatar; President & Partner, Irth Capital Management; Senior Advisor, Mavik Capital) and Vik Uppal (Founder and CEO, Mavik Capital) shared insights on international capital flows and global geopolitical factors influencing cross-border real estate investment.

Next on RER’s meeting calendar is the all-member State of the Industry (SOI) Meeting, which will include policy advisory committee sessions, on January 21–22, 2026, in Washington, DC.

The Federal Reserve on Wednesday approved a second consecutive quarter-point rate cut, lowering the federal funds rate to 3.75-4 percent. Chair Jerome Powell cautioned that another reduction in December is uncertain, suggesting the pace of easing could soon slow.

Fed's Decision

• The 10-2 vote saw Governor Stephen Miran favor a deeper half-point cut, while Kansas City Fed President Jeffrey Schmid opposed any reduction. (CNBC, Oct. 29)

• Policymakers cited rising downside risks to employment amid persistent inflation near 3 percent.

• Chair Powell noted "strongly differing views" on whether further easing is warranted, signaling a potential pause in December. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it,” he said. (Watch Press Conference)

• The chair also acknowledged the limited availability of economic data as the ongoing government shutdown has suspended federal data collection and reports.

Housing and CRE Outlook

• At this week’s Fall Roundtable Meeting, House Financial Services Chair Rep. French Hill (R-AR) noted that persistent inflation continues to weigh on markets, though gradual rate cuts are beginning to ease conditions for housing and credit.

• Continued monetary easing and the Fed’s balance sheet pivot may still bring modest relief to mortgage costs heading into 2026. (HousingWire, Oct. 29)

• Economists note that improved credit conditions could stimulate purchase demand and support CRE transaction activity, though affordability challenges persist.

RER Advocacy

• RER and coalition partners submitted a comment letter to the U.S. House of Representatives this week in support of H.R. 3682, the Financial Stability Oversight Council (FSOC) Improvement Act of 2025. (Letter, Oct. 28)

• The bill, approved 47-4 by the House Financial Services Committee in Sept, would require FSOC to consult with a company and its primary regulator before designating a nonbank as a Systemically Important Financial Institution (SIFI), which would be subject to heightened prudential regulation and supervision by the Federal Reserve Board. (House Financial Services Committee Vote No. FC-198, Sept. 16)

• The letter emphasized the importance of an activities-based approach to systemic risk, transparent cost-benefit analysis, and clear procedural guardrails to ensure predictability in financial oversight.

• This follows a similar letter RER signed in July supporting efforts to restore due-process standards and coordination between FSOC and primary regulators. The letter urged FSOC to rescind its 2023 interpretive guidance and reinstate the Council’s 2019 framework for designating nonbank financial companies. (Letter, July 14)

Basel III Endgame

• The Fed is circulating a revised Basel III Endgame proposal that would increase capital charges for large banks by 3-7 percent instead of the originally proposed 19 percent. (Bloomberg, Oct. 22)

• RER strongly opposed the Fed’s original proposal, pointing out the significant economic costs it would incur without clear benefits to the economy, recommending that it be withdrawn and only reissued after further study. (Roundtable Weekly, June 27)

RER will continue to track developments on monetary policies and support measures that preserve liquidity and lending capacity as rate relief remains gradual.

The federal government shutdown, now nearing its fifth week and on pace to become the longest in U.S. history, is showing early signs of bipartisan negotiation after weeks of stalemate. Lawmakers are facing mounting pressure to reach an agreement before critical deadlines affect food assistance and healthcare programs.

State of Play

• Bipartisan conversations have modestly increased this week as senators search for a path to end the impasse. Senate Majority Leader John Thune (R-SD) said talks “have picked up,” noting that deadlines often spur action. (PoliticoPro, Oct. 29)

• Despite limited optimism, lawmakers view progress onFY2026 appropriations as a potential vehicle to rebuild trust and advance a reopening framework. Still, with the Senate adjourned and the House out of session, finalizing a deal before key programs lapse remains difficult. (Roll Call, Oct. 29)

• Near-term pressure points include the exhaustion of Supplemental Nutrition Assistance Program (SNAP) and WIC benefits by the end of October, the start of Affordable Care Act (ACA) open enrollment on Nov. 1, and worsening transportation delays as air traffic controllers and TSA staff miss additional paychecks.

• Senate Minority Leader Chuck Schumer (D-NY) told reporters Tuesday that he believes Republicans will face “increased pressure to negotiate with us.” (Politico, Oct. 29)

• House Speaker Mike Johnson (R-LA) has kept the chamber out for more than a month, insisting that Democrats must first agree to reopen the government before broader spending or healthcare talks resume.

• However, rank-and-file senators from both parties report renewed engagement, with some GOP leaders predicting that centrist Democrats may soon support a compromise. (Politico, Oct. 29)

• Leader Thune said moderate Democrats are seeking an “off-ramp,” and he is willing to negotiate on extending ACA subsidies but only once the government reopens. Proposals include offering Democrats a vote on their own plan to continue the tax credits beyond December, and a possible meeting with President Trump to discuss ACA subsidies as early as next week. (The Hill, Oct. 30)

• In a series of Truth Social posts on Thursday, President Trump urged Republicans to eliminate the Senate filibuster, which currently requires 60 votes to advance legislation. Leader Thune has previously rejected changing the rule, calling the threshold “a bulwark against a lot of really bad things.” (CBS News, Oct. 31)

Economic Fallout

• The Congressional Budget Office (CBO) estimates the shutdown will cost the U.S. economy between $7 billion and $14 billion, depending on its duration, according to a new report released Wednesday. (CBO Letter, Oct. 29)

• In a letter from CBO Director Phillip Swagel to the Chairman of the House Budget Committee, the nonpartisan agency acknowledged that the real economic impact of the shutdown remains uncertain. (Politico, The Hill Oct. 29)

• A four-week shutdown would reduce real GDP by $7 billion, rising to $11 billion after six weeks and $14 billion after eight. (Bloomberg, Oct. 29)

• The CBO estimates the shutdown will reduce real GDP growth by 1 to 2 percentage points, with overall growth expected to recover after 2026—but some losses, particularly from federal worker furloughs, will be permanent.

• Lawmakers from both parties warn that the economic fallout will deepen if the impasse continues, threatening programs vital to housing, infrastructure, and financial markets.

Path Forward

• GOP leaders are exploring a continuing resolution (CR) that could extend government funding into mid-January or March, though several versions remain under discussion.

• Democrats oppose any measure that carries funding into next year without renewing the enhanced ACA subsidies set to expire in December.

RER continues to urge Congress to act responsibly to reopen the government and restore critical housing, insurance, and economic programs essential to real estate investment and growth.