February 2009

Federal Reserve Expected to Keep Interest Rates Low

The Federal Reserve met last week, and with the U.S. Economy entering a second year of recession, it is anticipated that the Feds will keep interest rates at all time lows for awhile and probably until the end of the year.  Besides making cash loans to banks to try and get the housing market and the economy jump started, the Feds have been buying up piles of short-term debt also referred to as commercial paper from various companies.  They also are buying mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to help the housing market. President Obama and Congress are working swiftly to enact a $825 billion economic stimulus package too.

This is all good