approach to its monetary actions, combining gradual rate changes and balance sheet reduction.
For capital markets, today’ s decision by the Federal Reserve translates into lower interest rates. Investors anticipated a shift in monetary policy as evidenced by the sustained decline in the 10-year Treasury since the start of September.
Policy Highlights: AI Updates From Congress, Trump Administration
The big question surrounds the likelihood of additional rate cuts at the two remaining meetings in October and December of this year. While the Fed remains open to making necessary adjustments to its policy stance, it will continue to rely on incoming economic data.
For consumers, the FOMC’ s decision today will likely ripple through the financial system within a couple of months. While interest rates for personal loans, auto loans and credit cards could see marginal improvement, they will continue at elevated levels.
For real estate markets, the Fed’ s monetary stance has more of a psychological impact in the near future. Buyers, sellers and agents, who have been hoping for lower mortgage rates for over two years, may feel relief at the shift. However, mortgage rates are not directly linked to the Fed’ s overnight rate, following longer-term bond yields instead. The recent drop in the 10-year Treasury has already pushed mortgage rates visibly lower, with the 30-year fixed rate tumbling from 6.6 % in August to 6.1 % at the midpoint of September. At the current pace, markets may see rates fall into 5.0 % territory in the last quarter of the year.
Looking toward the end of the year, the Fed must focus on balancing concerns over a slumping jobs market with the threat of rising prices. With housing comprising the largest share of household costs, addressing affordability remains a critical priority for many Americans.
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Artificial Intelligence( AI), machine learning and other new technologies have been becoming increasingly prevalent tools across industries nationwide. State and local governments have recently targeted the use of these technologies in rental housing operations notwithstanding legitimate business reasons for their use. Given the potential change that AI and emerging technologies have for American life, the federal government has also started engaging in this rapidly expanding policy field.
LEGISLATION BECOMES LAW
On July 4, 2025, the President signed the One Big Beautiful Bill Act( OBBBA) into law. The act sets new rules for AI, introducing governance and usage requirements, including:
• Providing federal funding, grants and tax incentives for American companies investing in AI infrastructure;
• Implementing limitations on foreign involvement in federally funded initiatives and participation within the supply chain;
• Enhanced scrutiny of technology licensing agreements and other methods of technology transfer to foreign entities.
The previous version of the bill included a provision for a ten-year moratorium, which would have paused implementation of state and local laws or regulations concerning artificial intelligence models or automated systems. However, this provision was not included in the final version of the legislation that President Trump signed into law.
As Congress returns from its August recess, legislators in both the House and Senate have signaled their intent to consider legislation addressing artificial intelligence on a national scale. The conversations will be shaped by the President’ s Action Plan, outlined below, as well as input from a multitude of stakeholders. The National Apartment Association( NAA) is working to inform this debate as it continues into the fall.
AI ACTION PLAN
The Trump White House has also released its AI Action Plan to accelerate private-sector-led innovation, build American AI infrastructure and lead in international AI diplomacy and security. The plan calls for a moratorium similar to the one excluded from the OBBBA, which directs the Federal Communications Commission( FCC) to consider preempting state AI rules and urges the Office of Management and Budget( OMB) to withhold federal funding from states with overly burdensome AI regulation.
President Trump also signed three Executive Orders( EOs) in July to set elements of the plan in motion:
• Accelerating Federal Permitting of Data Center Infrastructure emphasizes the need for efficient permitting processes to support the growing demands of these technologies;
• Preventing Woke AI In the Federal Government promotes the use of trustworthy AI by barring the use of“ woke” AI systems from federal contracting; and
• Promoting the Export of the American AI Technology Stack ensures that the United States remains a leader in AI development through the export of full-stack American AI technology packages.
DEEPER DIVE
The National Apartment Association( NAA) supports a balanced framework to prevent inconsistent state regulations that could hinder economic growth and innovation. Fragmented data, security and technology rules may raise compliance costs and reduce benefits for renters and housing providers. As the administration continues to consider the future of AI policy, NAA will continue its federal advocacy and support for balanced and sustainable policies that protect consumers without slowing technological progress.
TRENDS OCTOBER 2025 | 43