Daily Real Estate News  |  September 15, 2008

Fed Likely to Leave Key Rate Untouched

The Federal Reserve is widely expected to leave the federal-funds rate unchanged at 2 percent when it meets Tuesday.

In the wake of the Lehman Brothers bankruptcy announcement, some analysts are predicting that there might be a rate cut, but most observers say the Fed has resisted responding to recent market turmoil with rate cuts and is most likely to continue that policy.

The U.S. economy expanded at a healthy 3.3 percent annual rate in the second quarter, but many are expecting economic growth to slow to a crawl by the end of the year.

Source: The Wall Street Journal, Sudeep Reddy (09/15/08)