Interest rates are going to be kept in the zero to 0.25% range for the foreseeable future, according to announcements today via the Federal Reserve. They also indicated that these interest rates should remain in place for some indefinite period of time, with the intent of a continued economic stimulus for the national real estate market and our local Las Vegas real estate market.
The Fed has no more room to go in terms of additional rate cuts but the Federal Government is working on developing and implementing other economic stimulus plans that will help to stabilize our financial markets and help to inject more liquidity into the system.
Earlier this month the Federal Reserve Chairman, Ben Bernake indicated in a major policy speech that the Fed has three other approaches it can utilize moving forward to address the credit crunch including: direct lending to financial institutions, providing liquidity to key credit markets and also buying long term securities.
We believe all of these efforts are a good thing and applaud the Fed’s realization about how important it is to stimulate our overall financial infrastructure, especially (selfishly we admit) as relates to the real estate industry.
