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As most analysts expected, the Federal Reserve decided today (Dec. 10) to leave interest rates unchanged, which means the prime rate will remain at 4.25%, its lowest level since 1958.
Most RV dealers’ inventory loans are pegged to the prime, so their interest rates also should remain unchanged.
Only two years ago, the prime was 9.5%.
The Fed. slashed interest rates 1/2% last month and it believes low loan rates are helping the U.S. economy “work its way through its current soft spot.”
The next regularly scheduled Fed meeting will be on Jan. 28-29.
Some analysts now are concerned that because interest rates already are so low, any additional rate cuts by the Fed would have little positive impact on the economy.