As expected, the Fed cut its key lending rate to almost 0% today. Apparently, it’s in a variable range between 0% and 0.25%. Wow.
I suppose the only good news here is that the Fed really has no more room to slash rates. All it can really do now is pump billions/trillions of dollars into the money supply.
The bad news is that we can expect banks to start slashing their savings rates accordingly. I’m updating the rate Wiki right now with some recent drops that I missed a few days ago, but I expect more to fall soon, perhaps starting with ING and WaMu/Chase.
Hold on to your pocketbooks, folks.