Fed Increases Discount Rate to 0.75%: What This Means for You
Source: Informa Research Services
(02-18-2010)
In an announcement late Thursday, the Federal Reserve Board approved various modifications to its current discount window lending practices. Among the modifications, they increased the discount rate from 0.50% to 0.75%. This change is not a signal that there will be an immediate increase in interest rates on consumer and business loans according to Informa Research Services, a subsidiary of Informa plc (LSE: INF).
While today’s announcement did not signal any change in the Fed’s attitude toward current economy conditions, the increase in the discount rate may potentially yield an increase in the cost associated with home equity loans, credit cards, and auto loans. However, using online resources such as ERATE.com, consumers can still find the best rates on these products by comparison shopping beforehand.
In any rate environment, there is no reason to pay more than necessary on a loan. By using ERATE’s interactive tables, consumers can sort through various lenders to find the best deal on their desired loan type quickly and swiftly.
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