Federal Reserve Expected to Drop Rates Tomorrow
The Federal Reserve is expected to drop rates yet again tomorrow in a further attempt to get the US economy out of what most people believe is a true recession.
Oil prices are pushing up on $125 a barrel, food costs are escalating rapidly due to demand for ethanol, and its even rumored that postage prices may increase soon, so postage tape and stamps plus bulk rates could go up as well.
That all points to inflation, which in some cases has started to sneak into some mortgage rates, which despite the Federal reserve moves are not offering people much in the way of savings as banks pocket the adjustment in the form of profits to offset their sub prime loans. In that regard, another Fed rate cut is likely to be more of a bailout move than it is a boost to the economy.
