Fed Cuts Interest Rates to Record Low
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FacebookIn 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
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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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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!
Comment by My Journey — Dec 16th 2008 @ 9:26 pmlol that’s all i thought about too! my checking and savings accounts interest rates are gonna tank
Comment by Marion — Dec 16th 2008 @ 11:43 pmI 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.
Comment by Double Journey — Dec 17th 2008 @ 2:15 amDropping from 1 to 0 has no real impact.
Comment by gm — Dec 17th 2008 @ 11:56 am