Fed Cuts Main Interest Rate to Near Zero, to Boost Assets by $700 Billion
(www.foxbusiness.com)
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So wait. I'm not the best on Economic policy. Does this mean if I take out a loan for a house, I'll get to pay an interest rate of 0% or near it (depending on what the bank wants for interest, which would probably be low because the FED wants 0)?
No, the banks get 0%. You get whatever rate the banks feel like giving you.
My understanding is that it means free money for the bank. They charge you 3% and they pay 0%.
It’s the rate at which banks loan money to each other. Banks will charge interest on loans to consumers and businesses to earn a profit, but we could see loan rates go lower than they currently are. Good time to refi a home, etc.