Daily Real Estate News | May 1, 2008Fed Cuts Rates One-Quarter Point
The Federal Reserve cut interest rates Wednesday 25 basis points to 2 percent.
It's the lowest point in four years. The Fed was divided 8-2 on the cut. A statement from the majority of Fed members said: "The substantial easing of monetary policy to date ... should help to promote moderate growth over time and to mitigate risks to economic activity."
Observers believes this means that the Fed is unlikely to make any more cuts - at least through the end of this year.
"The Fed didn't completely shut the door on rate cuts, but they closed it part way," said Mark Zandi, chief economist at Moody's Economy.com. "I think the overall message was they've done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed."
Source: The Associated Press, Jeannine Aversa (04/30/2008)