JAN 08, 2007 Recent Decision on Rates due to Fed's Concerns over Housing
The most recent meeting of the Federal Reserve board was held in December. According to the minutes from that meeting, it appears that concerns over the recent slump in the
housing market may be a major factor in the reasons why the short-term interest rate remained unchanged.
A member of the Board wanted the final minutes of the meeting to include the suggestion of a possible rate cut in the future, however that statement was not included in the final public record.
The Federal Reserve Board is expected to keep the current rate at 5.25% when it meets next at the end of this month. Many analysts continue to predict rate cuts in the future.