May 11, 2008
Fed Cuts Funds Rate Again
Fed Cuts Funds Rate Again
For the seventh consecutive meeting, the Federal Open Market Committee (FOMC) cut the Fed Funds Rate, this time reducing it to 2.00%.
Lowering the Fed Funds Rate makes it less expensive for banks to lend to one another, which could make funding more readily available for consumer loans, such as adjustable rate mortgages, home equity lines of credit and credit cards.
Many believe it may, however, be the last rate cut for some time.
The Fed's statement made it clear that it is tending to two different fires right now; on one hand stoking the economy to keep it from slipping into a deep recession, while also dousing the flames of inflation as the costs of oil, food and other commodities begin to burn out of control.
We'd love to hear your feedback. Have any of the previous rate cuts made any noticeable difference to your personal financial situation? Have you seen lower interest rates on your credit cards, or is all of this rate cutting news not really making any difference at all to the average consumer? Use the comment link below and tell us what you think.
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