Fed cuts interest rates by 25 basis points

[Johnny2X2X]

Strongly hints at more cuts later this year citing weakening investment and exports because of the trade war.

Normally this would give a boost the the markets, but the language appears to have spurred some selling.

If you can refinance your home, the coming 6 months might be the time to do it.

[helpisontheway]

1. I really want to refinance...

we just refinanced in May and new interest rate is over 2% less than prior loan. Saved us a ton each month. Interest rates dropped more than 1% since then. Our loan officer said we have to wait 6 months after closing to refinance (VA IRRL refinance). We could do it now but we really would like to keep our current lender/servicer (they don’t sell loans). So we will keep our fingers crossed that rates remain low..

[Johnny2X2X]

5. We were already considering it

We bought our new home FHA 2 years ago so we pay PMI. Values have gone way up in our area so we can easily get appraised for 50% more than we owe. So for about $3K in closing costs I think I can get a rate about a half a point better and also save PMI. It's a no brainer for us, only question is to do it now or wait for the next rate cut.

[Hoyt]

2. I think the Fed said they DID NOT foresee the need for more rate cuts in 2019 or 2020.

At least that is what they are saying on MSNBC and CNBC.

[Johnny2X2X]

4. That's not true

There strongly hinted at another rate cut and some members voted for a 50 basis point cut today.

[Hoyt]

6. Here's article title: "Fed forecasts no further rate cuts in 2019 and 2020, but members are divided.

But economics is kind of like the Bible, one can usually find something to support one's position.

https://www.cnbc.com/2019/09/18/fed-dotplot-september-2019.html

[Johnny2X2X]

8. 3 Fed members wanted 50 points

Basically a divided Fed.

We heard the same things in 2008, "All is well, no big deal, 25 basis points but it's all good, no need to be alarmed."

[albacore]

3. Liquidity trap...? nt

[uponit7771]

7. Yep, more of what Putin ordered, make US bonds less attractive for holding money during a crash