RateAPY

Interest Rates May Rise According to FOMC Minutes

Posted by: RateAPY Bank Rates News
February 17th, 2010

Today, the Federal Reserve’s Federal Open Market Committee (FOMC) released the minutes from its January meetings. The minutes confirmed to investors that the FOMC is beginning to consider raising interest rates for banks. The current discount rate, money the Fed lends to banks for emergencies, is at 0.500%. Soon, banks may be penalized an additional 0.250% for needing emergency funds from the Fed.

The FOMC believes that the economy is growing between 2.8% and 3.5%. It anticipates growth to reach about 4% by next year. Unemployment is thought to be stabilizing and is expected to decrease next year, eventually hitting about 7% in 2012. This forecast is better than negative growth and growing unemployment. But it is not as robust as many economist believe is necessary to keep America’s economy number one.

Compare the highest yields that banks are offering on savings accounts, money market accounts, and certificates of deposit.