IF YOU ALL WATCH THE NEWS, THE FED JUST CUT RATES BY A HALF OF A POINT..... WHAT THIS BASICALLY MEANS IS THAT THE FEDERAL RESERVE CUT ITS INTEREST RATE FROM 5.25% TO 4.75%, AND THIS RATE IS THE RATE THAT BANKS CHARGE EACHOTHER.
THIS RATE CUT IS TO ENCOURAGE ECONOMIC GROWTH AND GIVE A CUSHION TO BORROWING COSTS TO BUSINESSES AND CONSUMERS, AND THE LENDERS PROFIT FROM THE CONFORMING LOANS THEY GIVE OUT, SO THEY HOPFULLY WILL REDUCE THE RATE THEY GIVE THE CONSUMER.
HOPEFULLY, THIS RATE CUT WILL ALLOW MORE JOBS IN THE COUNTRY, AND THE COST OF MONEY (WHICH IS WHAT AN INTEREST RATE IS) WILL DECREASE ALLOWING A MORE STABLE ECONOMY AND A LOWER INTEREST RATE FOR THE CONSUMERS.
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