OneUnited is not alone in cutting savings account rates this week. Some of the other online banks to also cut include:
- Savings Square: 4.00% APY (was 4.25%)
- AmTrustDirect e-Savings: 3.80% APY (was 4.10%)
- iGObanking: 3.90% APY (was 4.05%)
- WTDirect Savings: 3.91% APY for $10K min (was 4.01%)
- Capital One Savings: 3.85% APY for $10K min (was 4.00%)
- Capital One MMA: 3.25% APY (was 3.50%)
In the latest news revised data published today by the Labor Department indicates wholesale price inflation was less at the end of 2007 than previously thought. So this makes another 50-basis-point rate cut at the March 18th Fed meeting more likely. This New York Times article echoes the view that we'll see another rate cut on March 18. It also looks at the problems the Fed may soon have in containing inflation. But don't expect inflation concerns to prevent more rate cuts in the near term. According to the article, "Like the Fed, economists generally remain more concerned about the immediate threat of recession than the more distant fear of higher inflation."