Sunday, May 25, 2008
Fed says rate cuts to stop
Today I noticed a billboard which summed up the state of the economy. It gave a rate on a $100,000 7 year CD, and it was a whopping 3.45%. That means you are having a net loss of purchasing power keeping money in the CD. The only good things to come from such a low interest rate is that you can borrow against it for a low rate to pay off higher interest bills or invest in something. At least the Fed says they are done cutting . Now raising the interest rate slightly is what we need to stop the free fall of the USD.
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