October 8, 2008
October 8, 2008 by admin
The stock market dropped for the sixth day in a row despite the FOMC working with international banks on a collective move to lower interest rates. The market is selling off as concerns grow that the U.S. will be heading into a long recessionary period. The government and Federal Reserve have been working around the clock to help bring relief to the credit markets which continue to feel the strain of the global credit crunch.
The fed lowered both the fed funds rate and the fed discount rate. Banks often change the prime rate following a fed rate cut and the prime rate now stands at 4.5%. Mortgage rates trended up with the news today.