The September interest rate cut from the U.S. Federal Reserve and its timeliness drew a mixed bag of reactions from those in the construction industry, according to a recent Equipment World website poll.
The U.S. Federal Reserve lowered the target range for the federal funds rate by 0.25 percentage points to 4-4.25% in mid-September. Contributing factors for the Fed’s rate cut included slowing job gains, an unemployment rate that edged up but remained low, and inflation remaining somewhat elevated.
Since the poll was taken on equipmentworld.com, the Fed lowered rates again October 29 by another 0.25 percentage points to a range of 3.75-4%.
The recent Equipment World website poll, which received 113 responses, ran from mid-September through October asking readers how they felt about the September rate cut’s timing.
The largest percentage of respondents at 44% felt the rate cut had come too late, followed by 31% who felt it was “right on time” and 25% who felt the rate cut happened too soon.
Among the 47 contractors who responded to the poll, 45% said the rate cut was past due; 25% believed it was too soon; 23% thought it was the right time. Remaining responses came from readers including equipment manufacturers and equipment dealers.
When asked if they planned to refinance any equipment soon, only two contractors said they planned to do so. Several contractors mentioned they were waiting for rates to drop even lower.
Greater economic relief from interest rate cuts may be further down the line, however. During Construction Executive's recent 2025 Q3 Construction Economic Update and Forecast, Associated Builders and Contractors Chief Economist Anirban Basu said short-term rates don’t always lead to drops in long-term rates, which are the primary drivers of mortgage rates and other loans.
