The Federal Reserve lowered a key short-term interest rate today for the third time this year. The cut is designed to prevent a recession due to ongoing problems related to the U.S. housing and financial markets. The Federal Open Market Committee lowered its target for the federal funds rate by a quarter of a percentage point to 4.25% in an effort to stimulate moderate economic growth. The federal funds rate is an overnight bank lending interest rate that affects consumer interest rates on credit cards, home equity lines of credit (HELOC), and car loans. Read the press release from the Federal Reserve.
Check out "Fed cuts rates by a quarter point" from CNNMoney.com, "Fed Cuts Key Interest Rate: Stocks Fall Sharply on Lower Than Expected Cut" from the Washington Post, and "Fed's FOMC Cuts Interest Rates for Third Time Since Labor Day" from FOX Business.
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