Uncle Ben kept it at 5.25%
The FOMC decided to hold interested rate at 5.25% again. This move indicates the economy is holding steady and inflation remains tamed. The fact that the housing slow down now is in full effect will keep the FOMC increasing. In fact, now that housing has slowed, there is a chance the FOMC might need to actually cut rates to keep the economy humming along. For the remainder of the year, I am expecting the FOMC to keep the interest rate at the current level. In 2007, if the housing market doesn’t stop its free fall, there will be pressure to bring down the borrowing rates to 5.0%.
