The Federal Reserve again reduced interest rates recently, dropping the Federal Funds rate to 2% in an attempt to stimulate a slumping economy that is threatening recession. In what *appears* to be the final in a long string of rate cuts, the Fed hopes to spur economic growth by flushing money into the residential mortgage […]

The Federal Open Market Committee (FOMC) has again slashed interest rates, this time .75% in an attempt to restore confidence and, more to the point, assist banks and business as they attempt to recover from a credit crisis. The irony to this point is that mortgage rates and the prime rate have been plummeting along […]

It’s been quite some time since I’ve written, and I’ve missed the mark by a few weeks with this latest news, but better late than never, right? The Federal Open Market Committee, aka “The Fed” saw fit to drop the federal funds rate by .5% a few weeks back. Not satisfied that it was enough, […]

The Federal Reserve has again cut the federal funds rate, this time by .25%, in an attempt to bolster a faltering economy. Though the cut is welcome, it has left both investors and some in the banking industry a bit disappointed. The Dow Jones Industrial Average dropped almost 300 after the announcement, representing a rather […]

Let the confetti fall and the party begin, right? Wait…not so fast…
2001 saw the Fed Funds rate plummet, with what seemed like a daily cut in the rate until it finally rested at 1.25%, the return on long-term treasuries largely followed suit in a downward motion and low mortgage rates seemed like a godsend for […]

I was reading a recent article in the Wall Street Journal about credit markets being “too loose” in the recent past and how tight they’ve become in the present. It was interesting to read that the recent credit crunch is the result of events that unfolded as long ago as the 1980s (the dreaded S&L […]

The news was expected and here are excerpts from the report:
Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.
Readings on core inflation have improved modestly in recent […]

According to the “Prime Rate Blog“, the federal funds and prime rates are unlikely to drop at the September, 2007 meeting of the Federal Open Market Committee (FOMC). While that’s not necessarily news, the aforementioned blog includes an interesting feature that actually gives odds for rate changes. According to the blog:
As of right now, the […]