The Federal Reserve has balanced its view that economic activity is "leveling off" with caution about unresolved problems, including commercial real estate's maturing debt, that leave the nation's recovery vulnerable. There is a danger that rising defaults on commercial real estate mortgages will cause lenders to become ever tighter with money for new projects and refinancing for existing debt. The uncertain future of commercial real estate could weigh heavily on the Fed's thinking, said Michael Feroli, an economist with JPMorgan Economics.

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