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| Wednesday, January 30, 2008 |
| Fed Cut .50% |
The Federal Reserve has announced a half point rate cut The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent.
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully. Now let's see how long it takes for ING Direct and HSBC Direct to lower rates - again... |
| posted by Boston Gal @ 2:16 PM *
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| 11 Comments: |
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I got an email yesterday from HSBC Direct saying that my savings account interest rate has been dropped. Note the excerpt:
"We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 3.80% APY*. At 8x the national savings average**, you are still earning one of America’s highest savings rates."
I'm guessing that you're next! :(
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The email from HSBC reflected the FED's prior .75% rate cut last week.
They'll cut the rate (again) probably before Friday. I'm guessing that the new rate will probably be 3.4% (or lower)
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This is (imho) inflationary
and a very bad idea. This
purportedly Republican administration
seems to be much more interested
in buying votes than keeping
inflation under control. It's also
part of the current war on savers.
grrrr......
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Yes, we savers are gonna hurt, while the non savers get all the attention.
On the plus side, mortgage rates are again looking interesting. Is anybody thinking of refinancing? I got an email from Amerisave that almost sounds too good (4.7% on 30yr fixed; 4.25% on 10 ARM; 3.9% on 5ARM). Time to go shopping for rates!
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Glad I signed up for a 6 month CD with CountryWide CD. Wish I had gone for the 1 yr CD. My 6 months is up in May.
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Not too worried about the rate cut effect on savings. I am going to refi my mortgage from a 6.50 to 5.50 or lower and in the process save $642/month or more.
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My timing & luck is terrible. My 6 month CD is up for renewal next week, just after the 2 rate drops!
Maybe I will move it to a 3 month CD and hope for a miraculously improving economy to raise rates?
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Aquinon, those rates are way too good to be true. I see 6.75% for a 30 year fixed and 0 points when I go to the site.
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Does anyone know a good site to go to for a mortgage calculator? I want to run the numbers because I'm thinking of refinancing to a 10 ARM. I've got 25 yrs left on my fixed rate but I might be able to pay it off if I go with the adjustable and put the difference toward the principal.
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Anonymous - check out the mortgage calculators here
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Thanks, BG. You're the best. That calculator was exactly what I was looking for.
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I got an email yesterday from HSBC Direct saying that my savings account interest rate has been dropped. Note the excerpt:
"We are writing to inform you that based on the recent drop by the Federal Reserve, HSBC Direct has adjusted your Online Savings Account rate to 3.80% APY*. At 8x the national savings average**, you are still earning one of America’s highest savings rates."
I'm guessing that you're next! :(