The Real Deal Miami

Interest rate question looms over recovery

November 04, 2009 12:06PM

Mortgage interest rates are expected to remain steady following the Federal Reserve Open Markets Committee meeting today, but there is a growing concern among policymakers about how long the rates should continue at their artificial lows. Last month, the Fed decided to extend the program currently keeping commercial banks’ prime lending rate at a decades-low 3.25 percent in order to give the economy time to recover. Economists predict that because inflation is still low, the Fed won’t yet veer off that course. [Florida Today]