LendingTree Fed Rate Forecast: Chief Economist Predicts Third Interest Rate Cut this Year
CHARLOTTE, N.C., December 7, 2007 – The next Federal Open Market Committee (FOMC) meeting will take place on Tuesday, December 11. LendingTree Loans Chief Economist Jim Svinth forecasts a rate decrease of 50 basis points, which is the third interest rate cut for 2007.
Svinth states, “Given the slow motion decline of the housing and financial markets, the Fed will in all likelihood drop the target Fed Funds rate by .50% at the December 11 meeting.”
Svinth adds, “The ramifications to the domestic and global economies if the FOMC were to do nothing at next week’s meeting are huge. In the same vain, lowering rates by only .25% is simply not enough. Recent comments made by Fed members indicate they understand the current risks and therefore will take further action on Tuesday with a drop of .50%.”
A rate cut on December 11 will be the third rate cut for the FOMC following a pause campaign that has been in effect since August 8, 2006.
Note to Editors: Jim Svinth is available for print, radio and broadcast interviews – live or taped.
About LendingTree, LLC
LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 23 million loan requests and $185 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, credit cards and high-yield savings accounts via www.lendingtree.com and 800-555-TREE.
Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC also owns and operates LendingTree Loans sm, LendingTree Settlement Services, LLC, GetSmart®, and HomeLoanCenter.com. LendingTree, LLC is an operating company of IAC (NASDAQ: IACI).