Fed raises rates to 5%
As expected the Federal Reserve raised the federal funds rate to 5% today, up from 4.75. What everyone was really watching for was an indication if there was going to be more raises in the future. And of course they were cryptic in their future plans. My guess is Bernanke will continue to raise rates until the economy begins to slow but who knows. It will be interesting to see if any of the online savings accounts increase their interest rates in the next month. I’m hoping GMAC will continue to peg their money market account to the fed rate, as it is 4.75% apy currently.