The Federal Reserve Cuts Rates .75%

Tries to stave off a larger decline in the stock market

The Federal Open Market Committee (FOMC) held an emergency meeting last night to determine how to address the sharp sell off of stocks from around the world yesterday and the impending sell off US stocks today. It was the first special meeting since 9/17/01 and the largest one day cut since 1984. They decided to cut the Fed Funds Rate (FFR) to 3.5%.
Here’s an updated chart showing the Fed Funds Rate, the Prime Rate and the National 30 yr. Fixed Rate average.
FFR Prime 30yr 1-22-08
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To learn more about how Fed Rate cuts affect mortgage rates, check out our blog entry from Jan. 15, 2008
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