As suspected, the Federal Reserve did indeed cut interest rates today. Although the 0.75 point cut was a bit less than expected (many investors had hoped for a full point cut), Wall Street surged after the move was announced and had its largest one-day point gain in more than five years.
It remains to be seen how all of the recent rate cuts will affect our currently tumultuous real estate market. Economists note that it takes an average of six months for the effects of any kind of rate cut to be felt in the economy. What it could do sooner, however, is settle the fears of many consumers out there by letting them know that the Fed is willing to step up and do what they can to keep us out of a recession. (the dreaded "R" word!) Time will tell, but let's hope that consumer confidence can grow and that the rate cuts will begin to help us turn things around...
source: msnbc.com
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