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The Federal Reserve Board qualified for the lead item on both CBS' and ABC's newscast. ABC's Betsy Stark looked at the rapid results from Tuesday's reduction of short-term interest rates. They were "so far-reaching and so aggressive" that their impact is being felt in days rather than the usual months. A 30-year fixed-rate mortgage can now be found for less than 5% so lenders are flooded with refinancing applications. A lower prime lending rate is reducing the cost of adjustable mortgages and loans to small businesses, car buyers and college students. Stark warned that "not everyone will benefit. The 12m Americans whose homes are now worth less than their mortgages will not be able to take advantage of this historic opportunity."
CBS' Randall Pinkston and NBC's Lisa Myers both covered the Fed's credit card regulations. They will not take effect until July 2010 but when they do "the biggest change," according to CBS' Pinkston, will be "a new ban on raising interest rates." Banks will have to provide 45 days advance notice of a hike to timely payers. The 18 month hiatus will see banks change their business model, NBC's Myers predicted. She foresaw a future credit card industry with overall higher interest rates and less available plastic.
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