The Federal Reserve is finishing up a two day policy meeting today and will make an announcement at 2:15 pm Eastern. At the last meeting they decided to lower the Federal Funds Target Rate to a target range of 0.00% to 0.25%. They also indicated rates would be held low for a while. That action resulted in the Prime Rate going down to 3.25%.
It’s not clear what to expect today. They certainly will want to do something to positively impact consumers and business. But having previously lowered the rate to near zero percent, their options seem limited. We’ll keep an eye on their decision and report back later regarding the effects this meeting will have on interest rates.