General Area in USA>Question Details

Mr.P, Other/Just Looking in Arizona

FOMC Meeting tomorrow the 18th What`s it gonna be, Zero. -.25, -.50, -.75 or a full point rate cut????

Asked by Mr.P, Arizona Mon Sep 17, 2007

I think we are going to see a .50 ( half point ) rate cut tomorrow.
What do you think?

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3
Voices Member’s answer
I am guessing 1/2 point. A 1/4 point is just rubbing salt in the wound.

It will not equate, however into rate cuts for borrowers, in my opinion.

It will make it easier for investors to borrow more money to lend just as Countrywide sold off shares of stock for a larger equity line of credit. How many people did Countrywide lay off? 8,000?

It's going to take more aggressive measures to drop mortgage interest rates than a measly 1/2 point drop in the "discount rate" before consumers start seeing any benefit. It is all smoke and mirrors on the govt's part. Don't fool yourself.

Dig in for the lo-o-o-o-o-o-o-o-ng run.
1 vote Thank Flag Link Mon Sep 17, 2007
Hi Patrick,
I hope it is a half point. The lender in our office was just talking to us about this today, and he said that a quarter point is already basically "built-in" (expected), so that wouldn't have any positive effect on our industry. I don't expect more than a half, though it's fun to speculate!
1 vote Thank Flag Link Mon Sep 17, 2007
And................................ the answer to the question is 1/2 point!

The feds dropped the discount rate 1/2. Hopefully consumers will see some of that.

You win Best Answer for that one.
0 votes Thank Flag Link Tue Sep 18, 2007
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