Saturday, January 06, 2007

The FED and Rates

The following is from an article in the Washington Post on Jan 4, 2007. Most of my lenders are expecting the FED to cut the rate at the next meeting this month.



Policymakers’ concern over the housing slump kept them from raising the key short-term interest rate, according to the minutes of the Federal Reserve Board's most recent meeting in December, which were released Wednesday.

One Fed member, who wasn’t identified in the minutes, wanted the public statement to include a suggestion of a potential rate cut, but his wording didn’t make the final version.

The Fed is expected to let the benchmark rate stand at 5.25 percent at its next meeting at the end of this month. But many analysts predict a rate cut in the coming months.

Source: Washington Post, Jeannine Aversa and Tim Paradis (01/04/07)

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