1.
Auto Outlook: Toyota bullish on U.S. comeback
WASHINGTON, Dec. 15 (UPI) -- Economists predict the U.S. Federal Reserve Open Market Committee may cut interest rates to historic lows after a two-day meeting beginning Monday.
Fed chairman Ben Bernanke said on Dec. 1 that cutting federal fund rate , now at 1 percent, was "feasible."
Tuesday's announcement could include a rate cut to an historic low of 0.5 percent or lower, USA Today reported Monday.
The fund rate sets the rate banks charge for overnight lending to each other. It is no guarantee that banks will lower lending rates to consumers, but a lower rate gives banks room to do just that.
Chief economist of National City Richard DeKaser predicted a rate cut of 0.75 basis points to 0.25 percent.
But some feel even a big rate cut will have a minor effect on the economy. Banks have tightened lending and consumers have cut back on spending, reducing the potential benefits a rate cut would have on the economy, the newspaper said.
|
|
|
| Additional Business News Stories | |
WASHINGTON, Feb. 14 (UPI) --
White House critics say raising taxes on domestic energy is bad policy, though supporters counter the U.S. budget addresses the energy sea change.
|
WASGHINGTON, D.C., Feb. 13 (UPI) --
Defense industries are weighing the potential impact of proposed defense cuts running into tens of billions of dollars over the next 10 years.
|
Local markets will probably not be swamped by waves of foreclosures following the multi-state mortgage settlement announced yesterday. Rather, the huge inventory of one to two million foreclosures will enter markets gradually....
|
Investors will not have the distraction of financial reports to look forward to this week. They will have to look at the spot news headlines instead.
|
| Stories | Photos | People | Comments |
View Caption
