The Federal Reserve cut the key federal funds rate today by 0.50%. It is now 3.00% (which makes prime = 6.00%). Here is a brief snippet of what the Fed said today:
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing [...]
Posts Tagged ‘funds rate’
Rate Cut: Federal Reserve Slashes Rates by 0.50%
Fed Cuts Rate And Mortgage Interest Rates Rise
I’ve received a lot of calls asking about rates today. Everyone calls and wants to refinance since the Fed lowered the federal funds rate by 0.750%. I patiently tell everyone that the two rates (federal funds rate and mortgage rates) are not directly related. In fact the two are sooooo unrelated that they actually moved [...]
Financial Emergency: Fed Cuts Rates by 0.750%
Wow! 0.750% cut in rates. That means the Federal Funds rate is now at 3.50% and prime is at 6.50% (a full 1.750% reduction since September 2007).
This is a complete surprise. The Fed wasn’t going to meet until next week. A rate cut was expected, but with the plunge in global markets yesterday, the Fed [...]
