The Fed made an unexpected move over the weekend by lowering rates 25 basis points. There is still a possibility that rates will drop lower after their meeting this week.
[UPDATE 03/17: The rate that the Fed changed over the weekend does not impact the prime rate (currently 6%). However, this change and the failure of Bear Sterns does increase the possibility of a rate cut between 50 and 100 basis points. My bet is now that we'll see a 75 point drop and the prime rate at 5.25%]
