March 20, 2007 :: Curt Van Emon

FOMC meeting this week - Fed Funds Rate expected to remain at 5.25%

This means that the prime rate is expected to stay at 8.25% which is neither good nor bad news for equity line rates.  The Federal Open Market Committee sets the Federal funds rate which is currently at 5.25%.  The prime rate is 3 percentage points higher than the fed funds rate.  Equity lines, automobile financing rates and many other forms of debt are tied to the Prime Rate.

Fed Funds Rate Article - Wall Street Journal

 


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