“I figured that at 25 basis points per raise, it will take them 8 meetings to raise rates from 2% now to 4% and they have 6 meetings a year. This will give me one year and 4 months. Also I think they can’t start raising rates until after the election. So I am safe for at least two years.”
Don’t be a tool.
While the Fed Open Market Committee sets Fed Funds rates, who sets Prime?
Your BANK!!!!!
They can raise Prime overnight by as much as they want.
LIBOR is an index between banks, that changes when the big banks
change rates.
