Fed expected to raise funds rate to 4.5% today

[coffeebreak]

The Fed should announce a new funds rate of 4.5% at around 2:15pm Eastern today. This is the rate most of the online savings banks use to determine the rate they offer, so it's likely we will see increases there also.

Check here for the new rate:
http://www.federalreserve.gov/fomc/fundsrate.htm

[gavinmccallister]

Do I get a feeling of E-migrant going to 5% sometime in 2006? I hope so!

[gavinmccallister]

I wish we could be at 1990 levels!

1990
December 18 ... 25 7.00
December 7 ... 25 7.25
November 13 ... 25 7.50
October 29 ... 25 7.75
July 13 ... 25 8.00

and then I would get a CD locked into 8% I heard in the past that someone did that and the bank was desperatly trying to get the person to cash in their CD without a penelty, he didn't he let the CD mature.

[coffeebreak]

The federal funds rate is now 4.5%; just announced.

[gavinmccallister]

Yes, now how long should we wait until E-migrant raises their rates?

[coffeebreak]

Originally Posted by gavinmccallister

I wish we could be at 1990 levels!

1990
December 18 ... 25 7.00
December 7 ... 25 7.25
November 13 ... 25 7.50
October 29 ... 25 7.75
July 13 ... 25 8.00

and then I would get a CD locked into 8% I heard in the past that someone did that and the bank was desperatly trying to get the person to cash in their CD without a penelty, he didn't he let the CD mature.

Back in the 1980s the rates were in the 13-14% range. The problem was, so was inflation.

Buying a 30 year note back then would have been a really good idea. It would still be drawing interest today. I also remember banks trying to get people to cash them in.

[Ima saver]

I can remember the place I worked at, payed about 16% on cd's for a while!