Federal Reserve Policy makers voted unanimously on August 12 to maintain the federal funds rate at 1% until economic growth nudges price indexes higher. As the economy starts to bolster, economists expect that the 1% interest rate will stay in place for the rest of the year, and FED officials mentioned that they would keep open the option of lowering the rate even more. With recently rising stocks and positive economic indicators, the low interest rate should help support the stabilization of the economy. The primary credit discount rate on loans to banks from the Fed is still 2%. The Gross Domestic Product rose at a rate of 2.4% in the second quarter, and upon the Fed?EUR??,,????'???s announcement to maintain the record 45-year low funds rate, the Dow rose 14 points. The prime rate, which is what banks charge their largest customers, remains at 4%. However, some economists are worried about the slowing rate of inflation, which reached 0.9% in the second quarter from 2.7% in the first quarter. Such a slow inflation rate has economists concerned that the fragile economy could be blasted into another recession by any sort of shock, such as another war. Indications that improvements in the economy are not all-embracing include the loss of 44,000 jobs last month, and the increase in mortgage rates. Instead of hiring or creating more jobs, Bloomberg reports that businesses are demanding more output from their workers, devastating the number of jobs available. Mortgage rate, which tend to flow along with rates on 10-year treasury notes, have been changing so quickly that lenders have been unable lock in loans at the agreed-upon rates. In response to June?EUR??,,????'???s ultra-low fixed mortgage rates, so many people applied that financial service companies were inundated and unable to process the loans before the rate shot back up by more than 1%. That means that although a borrower agreed upon a 30-year fixed mortgage at a rate of 5.31% in mid-June, they may now be borrowing at up to a 6.35% rate. As the economy slowly revives between the borders of too-much and too-little inflation, it?EUR??,,????'???s crawl towards total health remains tenuous, at best. Sources: bankate.com, Bloomberg,com, azcentral.com