Home : Blogs : Bill Exeter (1031 Exchange Expert) : 1031 Exchange Qualified Intermediary

Federal Reserve Cuts Fed Funds Rate by 0.25% and Signals Pause

Federal Reserve Lowers Fed Funds Rate

The Federal Reserve cut the Fed Funds Rate by 0.25% from 2.25% to 2.00% today. The Federal Reserve also signaled that its rate cutting may be coming to an end. The smaller cut in the Fed Funds Rate, which was the 7th cut in the Fed Funds Rate since September 2007, was conservative compared to recent larger cuts and reflected upward pressure on inflation.

The Federal Reserve Board's Federal Open Market Committee (FOMC) voted 8 to 2 to cut the Fed Funds Rate at which banks lend money to each other by 0.25% from 2.25% to 2.00%, the lowest Fed Funds Rate since November 2004.

Discount Rate Also Lowered

The FOMC also lowered the discount rate charged to banks and brokers that borrow funds directly from the Federal Reserve's Discount Window by 0.25% from 2.50% to 2.25%.

Posted by Bill Exeter (1031 Exchange Expert) on 04/30/2008 01:55 PM

Comments (6)

Post is included in group: Investors
Post is included in group: California Central Valley Real Estate Professionals
Post is included in group: Tulare and Kings County CA Real Estate Professionals
Post is included in group: San Diego Real Estate Blog
Post is included in group: The Ninety-ninth Percentile

6 Comments on Federal Reserve Cuts Fed Funds Rate by 0.25% and Signals Pause

Hey Bill,

Thanks for this update. I've been so busy today that I did not notice or remember that this was suppost to be happening.

Sean Allen

04/30/2008 02:08 PM

by International Financing Solutions

They have came down a long way, so I can see why they might stop cutting them

04/30/2008 02:22 PM

by Chuck Carstensen (Re/max Associates Plus/The Discovery Coach)

Hi Sean,

You are most welcome. We watch it closely since it immediately affects our 1031 exchange clients yield and our revenue from interest sharing.

Glad it helped.

04/30/2008 05:16 PM

by Bill Exeter (1031 Exchange Expert) (Exeter 1031 Exchange Services, LLC)

Hi Chuck,

Thank you for visiting and commenting. The rates certainly have dropped quite a bit. In fact, there is not much more room to go. I think they probably have cut too much, but only time will tell.

04/30/2008 05:17 PM

by Bill Exeter (1031 Exchange Expert) (Exeter 1031 Exchange Services, LLC)

Hi Bill,

Thanks for the update, I wonder how low its going to go.

Steve

05/01/2008 07:54 PM

by Steven W. Monk (V. P., 1031 Exchange Expert) (Exeter 1031 Exchange Services)

Hi Steve,

It's a lot like limbo: How Low Can You Go! But, I think they're done lowering rates for the time being.

05/01/2008 07:58 PM

by Bill Exeter (1031 Exchange Expert) (Exeter 1031 Exchange Services, LLC)

Leave a response…

Name:

Notify me of new comments:

Comment:

What does the graphic say?