Fed Won't Raise Rates This Month
Cablevision (CVC) to be Acquired by AlticeWith the ink barely dry on the paper, Cablevision (CVC) announced that it was being acquired by Altice, a publicly-traded European cable conglomerate.
Fed Doesn’t Move Prime RateIt’s official, there won’t be any ged action on the price rate until December at the soonest. The Fed left today’s meeting without announcing an increase that many thought was coming. There are a few reasons why the Fed may have chosen not to act, but pressure on them to raise rates at home is mounting.
One of the reasons why the Fed may have kept the prime steady is the fiscal situation overseas. Markets in Asia and Europe have been soft to say the least. The IMF and World Bank have gone so far as asking the Fed to delay rate raises. Still, many analysts thought that the time could be right for an increase of at least 0.05% in the prime.
When the prime interest rate is raised, it affects borrowing and spending across American and globally. Banks pay more money to borrow from the Fed in order to fulfill loans, and that trickles down to everyday consumers. It costs more to lease and buy vehicles, mortgage rates go up, and in general credit is tightened.
The Fed has resisted raising the Prime rate to ensure that as much credit as is reasonably possible is in the marketplace. After the bubble burst in in 2008, credit was affected quite a bit. It became much harder for people to buy new cars and homes. In response, the Fed slashed the prime interest rate to 0%.
Published on Sep 17, 2015By Aaron Phillips