Gosh golly darn!

[E'01]

Hey folks, the feds cut the interest rate again, I think it's now 2%. I'd suggest for those of you who have loans to consolidate now. Unfortunately mine are locked at 5.9- something

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[Twizz]

Thanks for the info E'01.

 

[Ai]

I think it may be 1.5%?

 

[none]

I didn't realize how nice this will be for the unsubsidized med loans! Cool! Nice to see something bright come out of all this gloom.

 

[Chadleez1]

No, it's definitely 2%.

 

[E'01]

Text: Fed Statement on Rate Cut


WASHINGTON, Nov. 6 ? The Federal Reserve moved aggressively again today to revive the faltering economy, cutting interest rates by half a percentage points and signaling that it is ready to do more.
The Fed cuts its target for the federal funds rate on overnight loans between banks for the 10th time this year, to 2 percent. It also dropped its discount rate on loans the Fed makes to banks by half a point, to 1.5 percent.


The rest of the article is in the online NY Times. No problem Twizz - anything for my fellow SDN-ers

 

[md2be06]

The federal funds rate is currently at 2%, and is expected to go even lower. It's already at its lowest level in 40 years. The next fed meeting is December 11th, so watch for another cut then. Since we're in a recession, the fed isn't about to stop cutting rates; however, there's only so much they can do. It's the 10th time they've cut rates this year, but the economy has yet to respond. The problem is that this isn't a consumer driven recession, it's driven by a slowdown in business demand. The fed can cut rates all it wants, but until capital expenditures increase, the economy won't recover. Any econ majors/minors here?

 

[watto]

Yeah, the Fed has to watch out that we don't become Japan and actually start PAYING people to borrow money. They were hit by massive inflation as a result and their business sector was never stimulated. Aside from monetary policy, a little fiscal stimulus is probably in order right now.