Comments on: Federal Reserve Cuts Interest Rates Again

By: Kurt Brouwer

Kurt Brouwer — Thu, 14 Feb 2008 17:35:45 +0000

Beth–technically, the Fed does not set mortgage rates, but rather the Fed Funds rate. This is a short-term interest rate. However, when short-term rates fall, mortgage rates tend to drift down as well. The next regular meeting of the Federal Open Market Committe is on March 18, but if needed rates can be cut at any time.

By: Beth

Beth — Thu, 14 Feb 2008 16:43:44 +0000

when does the Fed meet again and do you think mortgage rates will be cut again? thank you

By: Kurt Brouwer

Kurt Brouwer — Sat, 26 Jan 2008 22:50:54 +0000

Yes, the Fed will almost certainly cut rates again. At this point, there is an assumption that the Fed will cut, so stocks would probably tumble a bit if the Fed did not cut rates at its upcoming meeting next week.

By: Clara

Clara — Sat, 26 Jan 2008 00:51:04 +0000

Do you think the Fed will cut the rate again? It’s interesting to see what the stock market does especially since it’s a measure of all investors collective behavior.