| The Federal Reserve is in full monetary easing mode. Yet borrowing for most consumers is becoming more - not less - expensive. What gives? After all, the point of monetary easing - which involves the Fed cutting its benchmark Federal Funds rate - is to make borrowing cheaper. In turn, Americans will go out and buy houses and cars and other major purchases that need to be financed through loans, and use their credit cards for smaller purchases. The Fed is not easing in reaction to a contracting economy or to put a floor under a falling stock market (as it has done many times). This time around it is merely trying to prolong the expansion of a healthy but slowing economy and keep the two-year old bull market going. That's why the Fed has cut its target rate by 0.75 percentage points since September, with the promise of many more rate cuts over the next year. Yet take a look at what mortgage rates have done in recent months... | 
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