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The FED will most likely announce today after their two day meeting they will leave the over night rate unchanged currently at 0 to .25%. The overnight rate is the going rate at which the FED charges banks for borrower money. So now looking back at any of the banks quarterly earnings, if they can borrower money at 0 to .25%…..lend it at 4.5 to 5.5%…….that is a pretty big profit. Further story at CNBC.com

All the eyes though on this announcement are more aimed towards the wording, is the FED planning to raise rates sooner or later? There has already been the announcement of the FED to stop Treasury buying (the United States debt) so that might be one impact on interest rates. They announced this would take place at the end of the 1st quarter (March). Depending on the direction they want to give, raising of the over night rate must come sooner or later. There is a lot going against the rates being this low…..dollar devaluation, but there is a lot going against raising them, JOBS, real estate, lending.

Hope this helps

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