Just curious what that really means without reading all the articles out today.
2007-08-17 03:54:30 · 4 answers · asked by Roxy 1 in Business & Finance ➔ Personal Finance
In the short term it means nothing. The rate the Federal Reserve bank cut is the rate banks pay for overnight loans. Longer term it could lower consumer interest rates like mortgage loans.
2007-08-17 04:17:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This means nothing for the average person. The discount rate is the rate the fed charges banks. It only means that the banks can borrow money at a lower rate. This will not help consumers at all with subprime adjustible rate mortages.
2007-08-18 16:49:07 · answer #2 · answered by lulu 2 · 0⤊ 0⤋
Absolutey nothing..... It just means that the banks pay less for money now. It is only one of two rates that the Fed controls... the one you are more familiar with is the prime rate.
2007-08-17 11:00:43 · answer #3 · answered by NY PTK 4 · 0⤊ 0⤋
The average person now can go for a few more months digging even deeper into debt before the bubble bursts. Batten down the hatches.
2007-08-17 11:41:25 · answer #4 · answered by acmeraven 7 · 0⤊ 0⤋