The Fed left the Fed Funds Rate unchanged again today for the ninth time in a row after 17 consecutive hikes.
The Fed once again highlighted inflation containment as its chief concern while noting that pressures on the economy appear to be moderating.
This is good news for holders of home equity lines of credit and credit card debt — both products’ interest rates are based on Prime Rate, a derivative of the Fed Funds Rate.
Not surprisingly, the Fed also gave a nod to the recent gyrations in stock and bond prices, although it did not state whether that is a strength or weakness to the overall economy.
Mortgage rates were flat after the Fed’s fairly neutral remarks.
Parsing the Fed Statement
The Wall Street Journal Online
August 7, 2007
Tony Gallegos – Serving the mortgage needs of Kennesaw, Marietta, Roswell, Smyrna, Powder Springs, Dallas, Acworth, Woodstock, Douglasville, Hiram, Austell and Atlanta. Subscribe to The Mortgage Cicerone: