Late Monday, U.S. President Donald Trump in an unprecedented and legally dubious move attempted to fire Federal Reserve Governor Lisa Cook, who plans to sue the administration to keep her job.
The attempted firing and fallout could lead to “short-term noise” for senior living M&A conditions, but high demand for those deals given demographic trends ahead will continue, propelling the sector forward, according to Vium Capital Principal Steve Kennedy.
Still, “developments at the Federal Reserve, including the news surrounding Governor Cook, introduce another layer of uncertainty into the broader capital markets,” Kennedy told Senior Housing News.
That uncertainty, coupled with interest rates have influenced transaction volume and valuations, Kennedy added. The Trump administration has clashed with the Fed repeatedly this year, clouding the future for lenders, brokers and agents gauging macroeconomic and monetary policy.
“For us, it underscores the importance of monitoring not just rates, but also investor confidence and lender sentiment. Stability in capital markets typically translates to more liquidity in senior housing M&A,” Kennedy said.
So far, neither major U.S. banks or stock markets have strongly reacted to the attempted firing, unprecedented as it is. The Federal Reserve is the central bank of the United States, and its relative independence from the federal government means it is able to make sometimes-unpopular decisions without interference from politicians who disagree with them.
Eric Winograd, chief economist at investment firm Alliance Bernstein, told the New York Times he likens the market’s so-far tepid response to a frog sitting in a pot of water that’s heating up.
“The market is not yet as concerned as I think it should be, but if we keep going down this path at some point the frog is going to boil,” he told the New York Times.
If the potential leadership changes at the Fed were to create “greater volatility or delay clarity on rate policy,” Kennedy said, that could ultimately derail or temper transaction plans in the near-term.
But it’s still “too soon to tell” what the impact on senior living M&A might be, according to Senior Living Investment Brokerage (SLIB) Executive Vice President Dave Balow.
“There’s always a period of uncertainty after major changes where speculation on what will happen runs rampant throughout the markets,” Balow said.
The senior living industry in 2025 has seen improved investor optimism and easier access to debt financing, while dealing with challenges on labor shortages, inflationary cost pressures and general affordability of the product.
From Balow’s perspective, SLIB continues to receive more offers for the company’s property listings, a sign he believes shows buyers are looking to acquire properties. This is a “positive change” from 2024 where average offers were lower. In 2025, there’s also greater competition for financing and able to secure more attractive terms than seen last year.
“SLIB’s closed transaction totals are trending higher than where they were at this point in the year in 2024,” Balow said.
This story is similar for leaders at Vium, Kennedy said, with 2025 being an “active” year with “steady deal flow” with capital seeking “quality assets in strong demographic markets.”
“Compared with 2024, buyer interest has broadened as more groups gain confidence in stabilizing occupancy and NOI trends, but underwriting remains conservative given rate uncertainty,” Kennedy said.
The post Trump Admin’s Attempted Fed Governor Firing Creates More Uncertainty for Senior Living M&A appeared first on Senior Housing News.
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