Key Interest Rates Reduced Yet Again

Ready to get started?

Your quotes are always free.

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites...

Full Bio →

Written by

UPDATED: Feb 25, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.

The Federal Reserve Board once again cut two key interest rates today. The Fed lowered its target for the federal funds rate by 50 basis points to 3.00 percent. The federal funds rate is the rate consumers pay on credit cards, home equity lines of credit and automobile loans. The Fed also reduced its target for the discount rate by 50 basis points to 3.50 percent. This is the rate banks pay to borrow money from the central bank.

Today’s cuts were the second significant rate reductions made by the Fed in the last ten days, as the central bank continues its attempt to ward off the possibility of a U.S. economic recession. The accompanying Fed statement cited growing concerns about the weakening economy and indicated more rate cuts might be necessary.

“Financial markets remain under considerable stress, and credit has tightened further for some businesses and households,” the statement said. The statement also mentioned the housing market continues to deteriorate.

The federal funds rate is an overnight bank lending rate that affects rates on various types of loans such as variable-rate mortgages and credit card rates, among others. The rate may also impact rates on various investment and insurance products offered by life insurance companies.

Ready to get started?

Your quotes are always free.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption