Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Nearly free money on the way?

December 15, 2008
The Federal Reserve this week is expected to drop the rate at which banks loan money to each other below 1 percent. That means interest rates on loans for just about everything, from cars to housing, eventually would fall further.

The interest youâ??d pay on a loan would be several percentage points higher than the so-called federal funds rate. But the trend is down, and that means the getting may be as good as itâ??s been in a long time.

If youâ??ve been holding back on a purchase, how much further would rates need to drop before youâ??d pull the trigger? Or are you so worried about the economy, your job or your business that even a â??freeâ?? loan wouldnâ??t draw you into the market?
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