September 18th, 2007
The FOMC dropped rates 50 Basis Points or 0.50%.? The rate went from 5.25% to 4.75%.
Short-term CDs will probably drop 20 Basis Points over the next few days.? Whether or not they drop further, depends on the outlook as we had to the next meeting.? Longer-term CDs probably won’t drop as much and we may even return to a normal yield curve.
The next meeting is October 30/31.
-- By +Chris Duncan