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 […]

I was terribly remiss in failing to immediately report that the Federal Open Market Committee (”The Fed”) adjourned it’s third monetary policy meeting a few weeks ago and held the Federal Funds Rate (short term rate applicable for bank-to-bank loans) at 5.25%. Prime rate held at 8.25%.