The Federal Reserve kept a key interest rate unchanged at 5.25 percent for a fourth consecutive meet

[wakeme2008]

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[Taverner]

1. I was wondering if they were going to lower them

They made a wise move - I'd let the housing market sink a little more (especially in the West, where it hasn't dropped much) before lowering by 1/4 of a point

[OrangeCountyDemocrat]

2. Raise?

I think they're going to Kill the Dollar, as opposed to raising rates.

Raising rates means DEATH to housing market, which is already on Life Support, and probably will be for the next 12-24 months WITHOUT further rate increases by the Fed above 5.25%.

I still think they're going to schmooze with China & Japan, to keep buying our treasuries, even though the interest rates on them suck. Perhaps they'll "bribe" these other foreign banks from raising their rates, so ours don't look as bad in comparison.

It's pretty much a no win situation.

[Taverner]

3. I meant lower

Duh...It's just not my morning

[OrangeCountyDemocrat]

4. Precious Metals

I'm going to do a happy dance when the Fed lowers rates, as I watch my Gold begin to climb again.

[Taverner]

5. Ahh but in the end, inflation will kill us all

No matter what we do...

It's the fatal flaw in Capitalism, that rears its head in every economic model. Keynes, Gallbraith, even Adam Smith knew it.

[olddad56]

7. inflation is how this country will pay off the war and screw ...

the foreign investors.

Of course, we in the middle will be sucked along for the ride. It is a repubician strategy, and the dems will be in office when it all goes bad. They'll look like fools, it will get blamed on tehm and the public will then be ready for another round of republician leadership.

[ThomCat]

6. Swag predicted it correctly.

[Tellurian]

8. Investors are gearing up..

waiting for the signal when the RE market bottoms out.

The interest rate may yet drop further anywhere from 1/4% to 1/2 % as the signal for investors to start buying.