The Federal Reserve meets tomorrow to decide on interest rates. The market expects the rates to remain at 5.25%. There are some who believe the Fed may cut rates to bail out the sagging stock market. I don’ t think this will happen, since the Fed’s state goal is to control inflation. As you may recall they left the rates alone last time they met.
Below is a chart to give you an idea of where the federal funds rate has been historically. The graph uses an annual average and the high point was at 16.39% in 1981. The low point was in 2003 at 1.13%.
Data Source: Federal Reserve Bank
Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.
The Fed Will Cut Interest Rates Tomorrow (Sept. 18th)
Rate Cut: Federal Reserve Slashes Rates by 0.50%
Mortgage Rates Not Related to the Federal Funds Rate
Related posts brought to you by Yet Another Related Posts Plugin.
on Aug 6th, 2007 at 11:45 am
Test Comment
on Sep 17th, 2007 at 8:40 am
[...] I predict that the Federal Reserve will cut interest rates tomorrow by 0.25%. This will lower the prime rate to 8.00%. As you may recall, the Federal Reserve left rates untouched the last time they met. [...]