The Federal Reserve cut its target for a key interest rate to its lowest level ever Tuesday. While that might not impact most people right away, stay tuned.
The Central Bank on Tuesday slashed the Federal Funds Rate to zero to 0.25 percent. That's basically free money for lenders. It's all part of efforts to get money out of holding and into the market.
Gary Weirauch of Citizens' State Bank of Loyal says there's a lot of liquidity in the market right now, so few people are willing to put their own out there. As a result, he says consumer confidence has dropped and we're seeing problems because of skyrocketing unemployment. That could also lead to deflation.
While the Fed Funds Rate won't have much of an impact on the average person, Weirauch says homeowners should keep their eyes open for refinancing opportunities. He says home loans could be driven down to 4.5-percent, which would probably do more stimulate the economy than any tax cut.
AUDIO: Paul Knoff reports (MP3 1:28)
