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
Richard Fisher
Wells Fargo posted a $2 billion profit in the first quarter on record revenue of $10.6 billion, whereas Washington Mutual, the nation’s sixth-largest originator, lost $1.14 billion. And JPMorgan Chase did better than both, reporting net income of $2.4 billion for the first quarter 2008. And poor Merrill Lynch posted its third straight quarterly loss:
The US Department of Commerce released the February consumer income and spending report today. Incomes increased by 0.5%, more than expected. Spending increased by 0.1%, in line with expectations. And perhaps most important, Personal Consumption Expenditures, the Fed’s favorite measure of inflation, came in at 0.1% expectations, last month’s PCE was revised down, and that
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
Fixed and ARM rates rose .5% two weeks ago, dropped .5% last week, then rose about .25% today following an ISM Index number that showed February manufacturing activity better than expected. Rates also moved up on public comments from Philadelphia Fed President Charles Plosser, a voting member of the rate-setting Federal Open Market Committee. He
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
Rates/Commentary, for the week of June 6, 2005. 30-yr and ARM rates are down .125% from last week. And it wasn’t the dismal May jobs report that came out Friday as many might expect. It was comments from the new Dallas Federal Reserve Bank president Richard Fisher who said mid-week that the Fed’s June 30