Fed Rate Cut Expected

Rate Cut Expected

Financial markets are pricing in an estimated drop in the Fed Funds Rate to 2% will be announced in the upcoming Fed Open Market Committee Meeting. The next meeting takes place March 18, 2008, with minutes - and the rate announcement - being released the second day of the meeting. So, expect some news on March 19, 2008, likely around lunchtime, Denver time. If the market is correct and the Fed drops the Fed Funds Rate to 2%, it will represent the lowest rate since November 10, 2004. The Fed Funds Rate is at a multi-year low of 3%, the lowest since May 3, 2005.

See the history of the Fed Funds Rate here: http://www.federalreserve.gov/fomc/fundsrate.htm