The Fed cut interest rates again today as they continue in their attempt to swoop in and save the economy from the credit crunch. Much like Superman, but boring and not as effective.
From the Federal Open Market Committee Statement:
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time.
They also left themselves some room to cut rates further:
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Federal Open Market Committee Statement [FED]
(Photo:MykReeve)
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treason, i declare treason
Yay! My (variable) student loan rates will be heading south!
Um… Did anyone else notice the 200 point drop in the Dow the minute this was announced? Looks like its down over 260 points at the moment…
I’ve held out this long to refi… how looooow will they go? Patience is running thin!
I think 4.0 maybe in the next 3 months after a weak holiday shopping season wraps up, then steady for a while.
@JPinCLE: LOL
there is a pretty obvious lower bound.
I’m pretty sure something will happen before the Fed takes up the same policies as the bank of japan.
Time to refi my vehicle.
@JPinCLE: Last week, my credit union’s no points 30 year refinance was down to 5.5% so I waited to see how low it would go. Today it is back up to 5.75%
@ErnieMcCracken: Figure in the lost value of the dollar against foreign currency and its worse!
@ErnieMcCracken: The market was hoping/expecting a deeper cut in interest rates.
@johnva: Yes, I know… Those greedy bastards…
Bleh. All my loans are fixed rate. I’m more interested in inflation and my savings account. Raise interest rates, dammit!
Remember that this is just the funds rate.
I’m happy the market is up a little bit. Still, not a good thing to turn the dollar into toilet paper.
I’m happy to see a drop in rates as I haven’t locked in the mortgage on my first home.
YIPEE–not like we were paying enough for food or energy before!
So they lower the rate and the ingrates still dump the stock market…
@catnapped: Shhhhhh….just don’t call it “inflation.”
Oh, but the good news is…if you exclude energy and food, there was very little inflation!
Actually isn’t lowering these rates RAISING the costs of mortgages? Since the banks will make less in short term notes that they will need to charge higher rates else where to make it up?
@dwayne_dibbly: Well of course–not as if anyone actually eats food or uses energy!
We can just melt all those DVD players down and heat our houses with those!