Federal Reserve Leaves Fed Funds Rate to Zero to 0.25%, Says Course of the Economy Depends on the Virus

Federal Reserve Leaves Fed Funds Rate to Zero to 0.25%, Says Course of the Economy Depends on the Virus

The Federal Reserve unanimously voted to leave interest rates unchanged when it concluded its two-day meeting today.   The Fed funds rate remains at a target of zero to 0.25 percent.   The Fed again signaled that it is prepared to keep providing the US economy with more support until it fully rebounds from the pandemic.   Given that the virus is still raging in most of the country and that Fed Chairman Jay Powell has already taken unpredecented steps to increase liquiity, today's announcement was entirely anticipated by financial markets.

Powell's actions have been well telegraphed, but may still set the stage for online banks and local banks to lower their savings rates still further.   You can compare online savings rates here and local savings rates here.   With rates still trending towards zero, it could still be a good time to put money that you do not need immediately in a short-term CD, and you can check one-year CD rates here.

Mortgage rates may have fallen about as far as they possibly can and those considering remortgaging should have a look at mortgage rates here.  Likewise, it could be a good time to take a look at taking out a home equity loan or line or credit.

Finally, a thought from us:  If Eleanor Roosevelt's statue can wear a mask, so can you.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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