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Justin's Banking / Loans Blog

By Justin Pritchard, About.com Guide to Banking / Loans since 2005

More Liquidity From the Fed

Tuesday March 11, 2008
The Fed took additional steps to help keep money moving today. With the help of several other central banks, they'll make more money available with additional offerings and changes to the rules. The problem is described below (from Reuters):
"Banks have essentially lost faith in each other after seven months of market unrest, making them reluctant to lend money to one another and driving up borrowing costs for the consumers and companies that power the world economy".
This may mean that interest rates will slow their fall, meaning your savings rates would hold somewhat steady. For details on the plan, see a description at Reuters.com.

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