Feds Still Raising Interest Rates
In a process that is going to span a few years, and take place in increments rather than all at once, the Federal Reserve, under the new chairman Ben Bernanke who replaced Alan Greenspan, will take the rate hike in increments, with meetings in between to determine the next step and next interest rate hike.
What does this mean for us?
It would mean an increase in interest rates on borrowed money for millions of consumers and businesses as commercial banks make the same adjustment, which is a quarter-point jump in the prime lending rate, pushing it to 8 percent.
Some economists and financial experts believe the Federal Reserve will stop with the funds rate at 5 percent, which is significantly higher than the forty six year low of 1 percent, which was in effect before the rate increases even began.
