Federal Reserve Meets Tomorrow (Aug. 7th)

The Federal Reserve meets tomorrow to decide on interest rates. The market expects the rates to remain at 5.25%. There are some who believe the Fed may cut rates to bail out the sagging stock market. I don’ t think this will happen, since the Fed’s state goal is to control inflation. As you may recall they left the rates alone last time they met.

Below is a chart to give you an idea of where the federal funds rate has been historically. The graph uses an annual average and the high point was at 16.39% in 1981. The low point was in 2003 at 1.13%.

Federal funds rate

Data Source: Federal Reserve Bank

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