Company: CHMI-PB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001140361-25-029603
Chunk: 5

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 5
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2024, the Company repurchased 395,897 shares of its Series B Preferred Stock at a weighted average purchase price of $23.77 per share and paid aggregate brokerage commissions of approximately $11,900 on such
          repurchases. The difference between the consideration transferred and the carrying value of the preferred stock repurchased resulted in a gain attributable to common stockholders of $78,000 for the year ended December 31, 2024. Shares of
          preferred stock that are repurchased by the Company cease to be outstanding but remain authorized for future issuance.

          46

            Table of Contents

Effects of Federal Reserve Policy on the Company

Since December 18, 2024, the Federal Reserve has maintained the federal funds rate target at 4.25% to 4.5%. This decision followed three consecutive rate cuts starting from September 18, 2024,
          totaling a 1.0% decrease. The September 2024 cut was the first in four years, following a period of tightened monetary policy in 2022 and 2023 to combat high inflation, which peaked at 9.1% in June 2022. In May 2025, inflation was at 2.4%.

The Federal Reserve has indicated its readiness to adjust monetary policy if new risks arise. Additionally, it has slowed the runoff of its balance sheet. On April 1, 2025, the monthly redemption
          cap on U.S. Treasury Securities was reduced from $25 billion to $5 billion, following a previous reduction from $60 billion to $25 billion in June 2024. The $35 billion cap on agency debt/MBS remains unchanged, with excess principal payments
          reinvested in U.S. Treasury securities.

The Federal Reserve seeks to achieve maximum employment and inflation at a rate of 2% in the long run. In line with this dual mandate, the unemployment rate has remained low, although inflation
          has remained somewhat above its 2% target. While uncertainty about the economic outlook has diminished, Federal Reserve Chair Jerome Powell recently indicated that the imposition of significant tariffs in the U.S. would likely cause inflation and
          unemployment to rise, threatening the Federal Reserve’s dual mandate to pursue maximum employment and stable prices. However, he said that the Federal Reserve will await taking action until the data demonstrates the impact of any new tariffs on
          the U.S. economy.

To the extent the Federal Reserve takes future action to ease monetary policy by reducing its federal funds rate