In theory, it does. When the Feds lower the prime rate it is to the banks that borrow money from the Feds, Federal Reserve Banks. Other banks then get their money from these Reserve Banks. Banks are a "for profit" businesses and because of that they move slowly to reduce the consumer loan rates. With the current problems with the Mortgage Lenders and the losses, the banks will likely move slower this time.
In theory, it does. When the Feds lower the prime rate it is to the banks that borrow money from the Feds, Federal Reserve Banks. Other banks then get their money from these Reserve Banks. Banks are a "for profit" businesses and because of that they move slowly to reduce the consumer loan rates. With the current problems with the Mortgage Lenders and the losses, the banks will likely move slower this time.
Maybe, but not necessarily. Other factors also apply.