The Federal Reserve is charged with keeping the economy humming and fighting inflation.
The Fed’s move has a cascading effect on the economy.
The prime interest rate, currently 4.25 percent, also closely follows the Fed funds rate.
The Fed’s $700 billion bond purchasing program should push the long-termrates for mortgagesdown further.
The current 30-year mortgage rate is 3.36 percent, close to an all-time record low.
In March 2019, for example, a three-month Treasury bill yielded 2.40 percent.
Friday, the three-month T-bill yielded 0.28 percent.
It’s likely the T-bill yield will fall to near zero, as it did in 2011.
Markets reacted negatively to the Fed’s move, pushing stock prices down sharply Monday morning.
The yield on the bellwether 10-year Treasury note fell to 0.78 percent.
The short-term disruption is unprecedented, but the long-term viability of the economy is not.
Financial planners assess the bear market and suggest ways to cope
Dow Falls into Bear Market Territory
