April 26, 2012 |
President Obama and congressional Democrats have leaped on the student loan issue as a partisan talking point, yet it's looking like the GOP has outflanked them. At issue is whether new recipients of a particular kind of financial aid for college, called subsidized Stafford loans, will pay twice the rate of interest on loans issued after July 1 as the ones issued now. Congress had passed a law in 2007 gradually reducing the rate from 6.8% to 3.4%, but the law expires in a little more than two months.
April 21, 2012 |
President Obama used his weekly video address to launch what will be a weeklong push on the issue of college affordability, pressing lawmakers to act to prevent a sharp increase in interest rates for student loans. The president noted that at a time of economic distress, a college degree has never been more important. But "it's also never been more expensive. " "In America, higher education cannot be a luxury. It's an economic imperative that every family must be able to afford," Obama said.
February 24, 2010 |
Most Federal Reserve bank directors voted for keeping the discount rate unchanged in mid-January, just weeks before the central bank raised the rate it charges for direct loans, according to minutes released in Washington. Directors at the St. Louis and Kansas City, Mo., Fed banks voted to increase the discount rate by a quarter of a point, to 0.75%, on Jan. 14, while directors at the 10 remaining regional Fed banks voted to maintain the rate at 0.5% during the month, minutes of the Fed board's decisions showed Tuesday.
CALIFORNIA | LOCAL
November 3, 1998
How does lowering interest rates help the economy? When interest rates come down, home prices shoot up. Houses don't sell, the market remains flat. What about all of us retired senior citizens who have saved all of our lives, hoping to live on the interest from our bank savings, but now with interest rates at an all-time low our buying power is rock bottom, too! We don't help the economy when we can't buy. VIRGINIA BLOCH Moreno Valley
February 20, 2010 |
How much of an economic recovery can we stand? With the Federal Reserve now looking serious about taking away some of the unprecedented support it has provided to the banking system and the economy, policymakers are posing a whole new set of challenges for financial markets. Stocks, bonds, real estate and commodities all have fed off cheap credit for the last year, which is why even the hint of higher short-term interest rates could be unsettling for them. But not so far: On Friday, U.S. markets were generally calm after the Fed late Thursday announced that it would raise the "discount rate" that banks pay for loans from the Fed to 0.75% from 0.50%.
October 24, 2012 |
WASHINGTON -- Federal Reserve policymakers on Wednesday held steady on their new stimulus program, launching no new initiatives while saying there has been some improvement in household spending and an uptick in inflation since the effort began last month. In a statement after its two-day meeting, the Federal Open Market Committee left short-tern interest rates unchanged and reiterated that it planned to keep them at their current level at least through mid-2015 because of the struggling economy.