How the New Fed Reserve Interest Rate Cut Will Affect Your Business
by Larry Slusser on April 2nd, 2008
The Federal Reserve again cut the short-term interest rates to 2.25 percent, which is three-quarters of a point lower than it has been since the end of 2004. The thought was that the decision was made due to the $30 billion in financing it gave to JPMorgan Chase for the acquisition of Bear Stearns. The question that remains is that will this move help the economy in any way? The Fed’s decision is to help keep consumers spending and borrowing, which is good for businesses. The lowering of the short-term interest rates will also keep asset prices higher. However, the... Read more »