September 20th Fed Meeting – Decision: No Change in Discount Rate

The Fed voted to keep the Fed Funds Rate unchanged at 5.25% at the September 20 meeting. This is the second time in six weeks the Fed has done that for a few months.

Two factors weighed heavily in the Fed decision—1) housing slowdown and its downward impact on the economy, and 2) lower inflationary risk as a result of sharp decline in oil and natural gas prices in recent weeks.

It is unlikely the Fed will change rates in their October meeting just before the mid-term elections. So borrowers will have a breathing spell.

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