Sigh. Fed Cuts Rate to Almost Zero Percent

Posted 16 December 2008 by

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.

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  • Post Title: Sigh. Fed Cuts Rate to Almost Zero Percent
  • Date Posted: 16 December 2008
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  • Filed As: The Fed
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One Response to Sigh. Fed Cuts Rate to Almost Zero Percent

  1. PennySeeds.com says:
    December 29, 2008 at 5:34 pm

    Yes, I’m not very happy about the drop in my savings account. I may be seeking greener pastures soon, but mine is not nearly as bad as some others.

    Try an online bank if your local bank is really kicking you in the teeth with their savings rates! Online institutions tend to offer much better returns.