commercial loan news

January 23, 2008

Smart Investors Look At How To Benefit From Rate Cuts

SOURCE: USATODAY

With the new rate cut from the Federal Reserve, there are a few good questions to ask: How long will it be before the economy is on the upswing? What can happen to the economy from the adjustment? How will this intake cash affect the stock market?

The Federal Reserve cuts short-term rates when it wants to boost the economy. The Fed cut its target rate for fed funds by three-quarters of a point, from 4.25% to 3.5%.

Lower rates mean there is more money to lend. Companies find it easier to get commercial loans for new factories and trucks. As companies expand, they can hire workers… thus helps the economy as a whole.

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