Fed Raises Rates (Again)
Tip It!The Federal Reserve raised interest rates for the 16th straight time yesterday, and left open the possibility of continued increases if they turn out to be necessary to keep inflation in check. After Wednesday’s 0.25% increase, the benchmark federal funds rate now stands at 5% — the highest it’s been in just over five years. It’ll be interesting to see what (if anything) this does for savings account interest rates which have stagnated a bit since the expiration of the promotional rates from the past winter.
Published on May 11th, 2006 - 3 Comments
Filed under: Economy
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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May 11th, 2006 at 11:19 am
I certainly saw this coming. I refinanced to a fixed rate 15-year mortgage while the rates were low. I only missed the bottom by a quarter point. I don’t plan to refinance again. Even if I could cut the rate significantly, I’d have the mortgage paid off about the same time I made back the cost of the refi.
May 11th, 2006 at 11:25 am
Just out of curiosity, what’s your rate on the 15-year mortgage? We currently have a 30 year fixed at 5.75%, but will end up with a 30-year at 6.375% when we move at the end of the month.