Fed Ahead • MPW Squeeze • Office Dividend Cut (Daily Recap) (NYSEARCA:RIET)

**Fed Ahead** As investors continue to look for the Federal Reserve to give them an answer on when interest rates could begin to be raised, the Fed minutes released today have indicated to the market that a rate hike is still far from being an imminent event. While this was not a market moving release, it does come at a time when inflation has risen to the forefront as a growing concern. The minutes provided further insight into the Fed's thinking on inflation, noting that while the recent readings have been "above expectations," the Fed still expects inflation to moderate over time. The Fed also acknowledged that the labor market has continued to improve, but noted that "slack remains." The minutes also showed that the Fed is still divided on the issue of when to raise rates. Some members believe that a rate hike could come as early as next year, while others believe that it could be 2023 or later before rates are raised. The market's reaction to the minutes was muted, with the major indices trading little changed. However, the minutes did provide some clarity on the Fed's thinking, which could help to calm some of the market's concerns about inflation. **MPW Squeeze** Shares of Medical Properties Trust (MPW) are trading higher today after the company announced a private placement of $500 million of senior unsecured notes due 2029. The proceeds from the offering will be used to repay existing debt and for general corporate purposes. The offering is a sign that MPW is looking to improve its financial flexibility and reduce its interest expense. **Office Dividend Cut** Real estate investment trust (REIT) Paramount Group (PGRE) has announced that it is cutting its quarterly dividend by 25% to $0.25 per share. The company said that the dividend cut was necessary to reduce its payout ratio and improve its financial flexibility. PGRE also said that it is considering selling some of its assets to further improve its balance sheet. The dividend cut is a disappointment for investors, but it is a necessary step for PGRE to improve its financial health.