The Federal Reserve dropped the federal funds rate by .5% down to 1%. This is the lowest it’s been since June, 2004. It was at 1%, the current rate, for one year: June, 2003 to June, 2004.
This means prime rate will drop to 4%. Prime rate is a key factor for much of our short term debt, especially, credit cards and home equity lines of credit.
Watch your credit card statements and any notices sent to you carefully! Just as the manufactures shrink the amount of food they give us in their packaging, credit card providers are jacking-up your interest rates and fees to help generate revenue. Also, they may cut your credit limit. Don’t get caught with your pants down on this!
It’s too cold for that!
improvman