Banks Follow The Fed

In response to the Federal Reserve lower interest rates, Banks are following suite. Institutions including Bank of America, Wells Fargo, and KeyCorp., announced that they were cutting their prime lending rate — for certain credit cards, home equity lines of credit, and other loans — by a corresponding amount, to 7.5 percent.

This also will bring down rates for first mortgages and re-finanance loans.

The Fed indicated they believe that this most recent interest rate cut along with the one in September will be enough to balance the risk of inflation. What this seems to indicate is that the Fed will leave interest rates alone when they next meet on December 11th.