The Fed Cuts Rates - What Does That Mean For Me?


	The Fed Cuts Rates - What Does That Mean For Me?

anpl32

1-28-2008 1:34 AM

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money finances interest recession fed

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/db63e028-6969-4616-8a54-44f0e50b7de1/0B473D01-4579-4C9A-8738-61D34B2ED0E9/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/" href="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/" style="font-size: 11px;">www.thesimpledollar.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><A href="http://www.guardian.co.uk/business/2008/jan/22/useconomy.marketturmoil1" linkindex="19" set="yes">the Federal Reserve cut the prime lending rate by 0.75%</A>.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>for most people the actions of the Federal Reserve seem to have no connection to their day to day life.</STRONG></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>the prime lending rate is the interest rate that banks charge each other for short term loans</STRONG>.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>many, <EM>many</EM> other rates that do affect your life are affected by the prime lending rate.</STRONG></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>The interest rates on your savings accounts will drop.</STRONG>  </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>The interest rates on mortgages will drop, perhaps convincing you to refinance.</STRONG>  </blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/">The interest rates on car loans will drop</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/">The interest rates on variable rate credit cards will drop.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/">In a nutshell, when the Federal Reserve drops the prime lending rate, they’re encouraging you to spend money.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>now is a good time to start thinking about larger purchases that you may need to execute soon.</STRONG></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.thesimpledollar.com/2008/01/23/the-fed-cuts-rates-what-does-that-mean-for-me/"><STRONG>That doesn’t mean that you should go out and spend</STRONG></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/0B473D01-4579-4C9A-8738-61D34B2ED0E9/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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