Rate: Stays at 3 percent all year
The details: After a recession started the decade, the nation stands poised for economic prosperity. The Fed propels growth by starting the year with a federal funds rate of 3 percent, one of the lowest marks in years, and the rate hovers around 3 percent for much of the year. This greases the housing market with lower mortgage rates and helps businesses expand and add jobs. Meltzer says President Bill Clinton's long-term debt-reduction plan "gave people confidence to invest.''
More On The Economy:
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Remember the wise decision that Bank of America made in August 2001 in light of the decision it's making now.
... Read more