Atlanta-Born Firms' M&A Lawyers Skeptical Fed's Rate Cuts Will Spur Dealmaking
"I expect a lot of quality assets are still going to wait on the sidelines a bit longer and wait for rates to come down even further," said Alston & Bird transactional partner Kyle Healy.
September 19, 2024 at 05:59 PM
4 minute read
What You Need to Know
- Some lawyers with Atlanta-centric firms say rate cut was a "step in the right direction."
- They also don't see it spurring dealmaking activity until after the Fed makes more cuts in coming months.
- Greater M&A activity may not happen until after the new year begins, they say.
Some transactional partners with Atlanta's largest firms say the Federal Reserve's interest rate cut this week was "a step in the right direction" toward increasing demand for M&A but buyers may be waiting for further decreases to further spur dealmaking.
The Fed announced it cut interest rates by 0.5% Wednesday for its first rate cut since March 2020. CNN reported that chairman Jerome Powell told reporters the Fed cut rates to prevent weakness from cropping up in the economy—though it also is not yet satisfied with how far inflation has fallen in recent months.
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