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The Feds cut interest rate by 1/2 point!
In an effort to keep another great depression at bay, the Federal Reserve led by chairman Ben Bernanke, cut a key interest rate down to 4.75%. The Feds have been receiving pressure to reduce rates and this cut will have several different impacts on our economy. The immediate relief will be seen in loans, and hopefully spur the souring housing market. Current ARM owners will also see some benefits, but not likely as immediate or as drastic as those who are currently trying to buy a home.
The short term implications will help spur the economy, but it will likely be 3-9 months before we see any real results from this cut. The Feds have also left the door open for further cuts, but don’t expect anything too soon.