Fed Cuts Interest Rates to Record Low
In case you missed the news, the Federal Reserve has cut rates to what it calls a “target range” of 0-0.25% and further indicated that they won’t be increasing anytime soon. This is the ninth rate cut in the past 14 months, and leaves the Fed with virtually no room for additional cuts. In other news, the dollar fell and gold prices increased.
It’ll be interesting to see what this does to interest rates for online savings accounts. Once again, now might be a good time to consider buying CDs before banks drop their rates.
Published on December 16th, 2008 - 4 Comments
Filed under: Banking, 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!
Related articles...
» Mortgage Rates at Record Low, Few Refinancing» Will the Bush Era Tax Cuts Be Extended?
» An End to Rising Rates?
» HSBC Direct Drops Savings Rate
» Budget Cuts, Fireworks, and the 4th of July
» Fed Issues Major Rate Cut
» PenFed CD Rates Increased to 6.00% APY
» Deciding When to Refinance Your Mortgage
Was this article useful? Please sign up to receive our content via e-mail:
4 Responses to “Fed Cuts Interest Rates to Record Low”
Leave a Reply
Top Cards by Category
Earn $200 Bonus Cash Back after you make $500 in purchases in your first 3 months. 5% Cash Back on up to $1,500 spent in bonus categories each quarter.
Earn 25,000 Membership Rewards(R) bonus points when you spend $1,000 in your first three months of Card membership.
Earn 25,000 Membership Rewards(R) bonus points when you spend $1,000 in your first three months of Card membership.
Enjoy a 0% introductory rate for 18 months on Balance Transfers and 6 months on Purchases. Earn up to 5% cash back in categories that change.
Enjoy no balance transfer fee for a limited time. 0% introductory rate on Balance Transfers and Purchases. Earn up to 5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*
Enjoy no balance transfer fee for a limited time. 0% introductory rate on Balance Transfers and Purchases. Earn up to 5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*
Enjoy amenities for you and your business, like: complimentary airport club access, including American Airlines Admirals Club(R) lounges.
5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*. Up to 1% unlimited Cashback Bonus on everything else. No annual fee
Earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else.
Reports to 3 major credit bureaus monthly and acceptance at millions of locations worldwide, including website purchases and reservations.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math
- Dish Network Customer Service SUCKS
- $8,000 Homebuyer Tax Credit
- Pay Off Mortgage Early or Invest?
- How to Claim the First-Time Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- $15,000 Homebuyer Tax Credit
- Ethanol Blended Gas = Lower Mileage?
- Termite Control: Sentricon vs. Termidor
- How Much Should You Pay a Babysitter?
- Federal Income Tax Rates Went Down but Your Federal Tax Withholding Increased. Here's Why...
- Would the "Fair Tax" Gut the Economy?
How to save money on insurance
- Double-Check Your Ally CDs
- Stocks are Not Bonds, CDs, or Savings Accounts
- The Best Values in Colleges - 2012 Edition
- Five Myths About Renter's Insurance
- Own Your Investments, Rent Your Fun
- Citibank to Issue Credit Cards in China
- Heartstrings and Pursestrings
- Saving Money at the Grocery Store: Store Brand Pricing on the Rise
- Missing Tax Paperwork?
- Is Your Investment Allocation Right?

Tip It!
December 16th, 2008 at 9:26 pm
I have been getting so frustrated watching my ing rate drop drop drop! At the same time the 2% increase between CDs and High Yield Savings account doesn’t make me all that excited considering the restrictions of CDs. Just me!
December 16th, 2008 at 11:43 pm
lol that’s all i thought about too! my checking and savings accounts interest rates are gonna tank
December 17th, 2008 at 2:15 am
I have no idea what the Fed is doing here. They seriously have no room now to deal with any additional negative shocks, which there definitely will be in the months ahead.
December 17th, 2008 at 11:56 am
Dropping from 1 to 0 has no real impact.