Rate Cuts Appear Not To Be Easing Credit February 17, 2008
Posted by davidzweig in economics.trackback
From Bloomberg.com: Worldwide February 13:
The Federal Reserve’s interest-rate cuts last month have failed to lower borrowing costs for many companies and households, increasing the chance of further reductions from the central bank.Companies are paying more to borrow now than before the Fed reduced its benchmark rate by 1.25 percentage point over nine days in January, based on data compiled by Merrill Lynch & Co. Rates on so-called jumbo mortgages, those above $417,000, have increased in the past month, making it tougher to sell properties and risking further price declines.
Would that these measures would have equally low effects on inflation…
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