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US Interest Rates Slashed to 1%
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by Christina 123 | October 29, 2008 at 10:46 am
122 views | 4 Recommendations | 5 comments
THE FEDERAL Reserve has slashed interest rates to 1% it has been announced in a move to avoid recession.
The Federal Reserve has cut its key interest rate from 1.5% to 1% in a widely expected move, as it aims to avoid a possible US recession.
Earlier this month the Fed cut rates from 2% to 1.5% in an emergency move, which was co-ordinated with five other central banks.
Interest rates have been slashed since September 2007, when the federal funds rate stood at 5.25%.
The 1% level was last seen between June 2003 and June 2004.
'Moderate economic growth'
The move is confirmation that inflation is no longer seen as the major threat to the US economy.
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Most RecentMost Recommended Comments (5)
at 11:00 on October 29th, 2008
Christina 123, I like this story. It's good stuff.
How great...???!!!!
it will make the bank richer again as the mortgage rates for us went up, at least here in Canada.
So the whole idea of having cheap money only works for the banks as they get super cheap money, on the other side they bring their rates for us up - how should that help the economy??
It only helps the banks again - this is the beginning of the same circle again - and the tax payers paying the price, again.....
at 11:10 on October 29th, 2008
1%! That's so low.
at 11:15 on October 29th, 2008
They might be fearing inflation since they just dumped $3 trillion in funny money on the banks.
at 11:23 on October 29th, 2008
A totally bogus move: this is classic bed-feathering for the banks with tax payers' money. The Japanese did the same trick in the 90s and it didn't help the economy. The British will be very dumb to follow suit on this (but they will). Wake up! Your mortgages and debts will not get cheaper: it is not in the banks' interest to make it cheaper.
at 11:51 on October 29th, 2008
Christina 123, I like this story. It's good stuff.
It's great that the interest rates have been slashed .. now if only the banks weren't so greedy. On one hand the banks here in Canada increase the lending rates then on the other hand they slash the interest rates on savings. Joe Bloggs (or the plumber) on the street is the loser in this scenario ... still (same old, same old)!!