Wednesday, January 30, 2008

Another rate cut?!?

Somehow it had not occurred to me that the Fed would even consider making another rate cut during the regularly scheduled meeting. After such a drastic decrease in federal funds rate just last week, it hardly seemed that further action would be desirable right away. Is this going to set off a new era of stagflation? There's so much I don't understand here.

I suppose I can expect another slightly depressing email from HSBC any day now. They'll respond to the 50 basis point drop pretty quickly. Darn it, I have no desire to borrow money. I'd like to earn interest, not pay it.

1 comment:

Tim said...

Yep, it's unfortunate but my rate is now at 3.80% with HSBC. Looks like the good 'ol days of 5.05% are over for awhile. Like you mention, I believe today's 50 basis point cut in the fed funds rate will trigger even further HSBC interest rate declines.