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
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on Aug 6th, 2007 at 11:45 am
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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. [...]