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What Will The Fed Do Today? (WWTFDT)

The Federal Reserve will be making their move today - My question to the Rainers - What do you think they will do? I have my own opinion - you can read it here but I want to hear from others in the industry. Will Ben Bernanke knock one out of the park or will he just ground out to first?

Posted by Ronnie Roach on 03/18/2008 06:30 AM

Comments (12)

12 Comments on What Will The Fed Do Today? (WWTFDT)

MAR

2008

I looking for a homer...

Be of service! The rewards will come!

He will lower thew rates and screw everbody but the big boys. You can take that to your shaky bank

Since they cut the rate by .25% over the weekend, I think the rate will stay where it is. I hope (for the sake of my refi business) that it drops again.

I just finished my Blog asking almost the same questions..... What will the Fed do at 2 15 this afternoon...

My guess... 75 basis point cut to the Fed Funds.... and maybe a little trim to the discount window....

It will probably be the last rate cut for quite sometime seeing as with a 75 basis point cut we will be dangerously close to having real interest rates at a negative interest rate including the inflation percentage of 2.25%

Lowered by .250 to .500 basis points on prime. I may even go to say .750.

The economy is still reeling and spending stimulus starts with prime rate. I'm afraid we are on shaky ground and Bear isn't the only one in the woods.

The lower our interest rate goes, the more investors, including foreign countries, will look to investments outside our country. This lowers the value of the dollar, inflating the price of everything for us from gold to gasoline.

Charlie - My bank is not one of the many shaky banks

Molly - they cut the discount rate (overnight lending rate) on Sunday by 1/4% - not the fed rate. That is scheduled for today.

Chris and Laura - my guess is a little higher

Brian - you are correct - the weak dollar and inflation are two big concerns

Great Post, Thanks for the information. I'll keep it all top of mind. Keep up the great blogs

Ronnie,

My bet is on the high side...closer to 750 basis points on prime. How close can we get though before we are at a negative position when inflation is factored in? I will visit back here late this afternoon and see how we all did!;)

Sean

My money is on the grounder. The inflation numbers today don't make a full point the most likely move. I think Bear was the sacraficial lamb for overseas markets to see what the Fed would do and bring back faith.

AUG

2008

noticed you havent been posting in some time. May I ask you if you found AR not to be a good way to market your business to consumers. Do you use and outside blog instead??

NOV

I liked your blog and articles... I'm starting a sub referral group at realestateloans dot com within a few weeks... please consider joining me. It may also be a good place to syndicate your articles. mike mike.realestateloans.com

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