Fed Holds

Just in case you missed it, the Federal Reserve met this week and held interest rates for the fifth consecutive meeting.  The federal funds rate is currently 5.25 percent, and the prime rate is at 8.25 percent.

It is expected that the Fed will hold interest rates for a while, however when they do make a move, the Fed says they are more likely to increase rates than to decrease them, due to "firmer economic growth". 

People in the housing industry are still hurting from the decline in housing, so they would prefer to see a decrease in interest rates, rather than an increase, but only time will tell.

The stock market expected rates to remain steady, and responded by setting a record trading high today, and came close to reaching the record closing high reached last week.

Tags: Federal Reserve, stock market, interest rates