Fed Seen Cutting Rates Again, Decision Expected Today

It cut rates by a-half point in September. That surprised stock market investors, who reacted by sending the key averages up to record levels in the weeks that followed.
Analysts say a quarter-point cut is more likely this time around.
The central bank is seen wanting to respond to a credit crunch that hit its peak in August. The fear is that the slump in the housing market could spread to the broader economy and cause a recession.
A reduction in the fed funds rate would be expected to reduce rates charged for home equity lines of credit and certain credit cards. It would also provide relief to borrowers with adjustable rate mortgages who face a reset of their rate at a higher level.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
23 WIFR 2523 North Meridian Road Rockford, IL. 61101 Business: 815-987-5300 Fax: 815-965-0981 News: 815-987-5330 Fax: 815-987-5333
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 10915351 - wifr.com/a?a=10915351
Gray Television, Inc.