What do you predict the feds are going to do with the interest rate?

Question

Last year they raised it, like, 17 times in a row or something. With the impeding recession due to forclosures, plummeting home values, glut of available homes for sale etc., what do you think the fed should do with the current interest rate? Please explain and qualify your answer.

Answer 1

Probably nothing for a while. The discount rate is now up to roughly historically average levels, and although there is still some inflationary pressure on commodities, it appears to have abated a bit. I noted that the price of copper wire has come down a bit recently, although it is still much higher than it was a few years ago.

Answer 2

I would venture to guess that rates will remain unchanged for some time. And yes, there are market areas in the states where home values are decreasing (perhaps not plummeting). Also with the sub prime market taking a beating, it might get worse. However today stats showed that purchases are picking up in the face of lower housing costs. That's the best news the housing industry has heard in some time.

Answer 3

They just had a meeting. They left the interest rate alone. There is no fear of high inflation. The housing sector will pick up when the winter weather breaks. All other business sectors are moving along nicely.
In the next meeting, in May, they will not change the interest rate. There is no reason to.

Answer 4

Where have you been? Plummeting home values? Not where I live. Interest rates are still considered low.

Answer 5

If their smart they will lower it and taxes to boost the economy.

Answer 6

They'll either raise them, lower them, or leave them alone. You can take that to the bank.

Answer 7

higher Bob, higher