Randall Kroszner

FOMC Cuts Fed Funds To 2%, Discount Rate To 2.25% (Full Statement)

The Federal Open Market Committee cut the Fed Funds Rate to 2% and the Discount Rate to 2.25% today, and implied that weak economic activity and inflationary threats (especially in energy and commodity prices) may offset each other. Since August, the Fed has cut the bank-to-bank Fed Funds Rate 3.25% (from 5.25% to 2.0%), and

Fed Cuts Discount & Fed Funds 75bps Each, Mortgages Higher

After today’s scheduled FOMC meeting, markets expected a Fed Funds Rate cut of 100 basis points, but the Fed only cut by 75 bps. The Fed Funds Rate, a bank-to-bank lending rate, now stands at 2.25%. The Prime Rate is Fed Funds + 3%, so Prime is now 5.25%. Home Equity Line of Credit 2nd

WeeklyBasis 02/25/08: Inflation or Recession or Both?

Fixed and ARM rates are up by almost .5% since last week, and we’re still seeing .25% to .375% swings from day to day. Rates drop on recession concerns and rise on inflation concerns, and markets can’t decide which is the bigger issue. This is the reason for the volatility, and rates are up because