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Article: No one predicts a quick fix; Federal Reserve officials are expected to lower short-term interest rates on Tuesday, and during the rest of the year. But financial markets are plagued by troubles that go beyond the price of loans.(BUSINESS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- September 16, 2007
- Author:
CopyrightCOPYRIGHT 2007 Star Tribune Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Mike Meyers; Staff Writer
Can falling interest rates cure falling confidence?
They've worked in the past. Now the Federal Reserve is expected to embark on a new series of interest rate cuts in an effort to keep the worst blowup in housing in decades from dragging down the rest of the economy.
Most forecasters expect the Fed to cut a key short-term interest benchmark, the federal funds rate, by a quarter-point or even half a point when it meets Tuesday. By the end of the year, many economists believe, the Fed will ratchet down the rate by three-quarters or a full percentage point.
For borrowers, those moves could mean that their ...