Wednesday, December 13, 2006

Lack of Interest in Interest Rates

As expected, the Federal Reserve Board left unchanged the discount rate, which is the rate that dictates short term ( less than one year) interest rates. Predictions are that these rates will be down 50 basis points (1/2 of one percent) by the end of 2007. But keep an eye on inflation talk. If inflation fears pop up, look for higher rates.