Market News Comments

Interest Rates

The Fed said late Thursday it is raising its discount rate by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.
Ben Bernanke's Fed is taking a small step toward normal policy. The move is largely symbolic, because banks do little borrowing at the discount window. The unanimous decision to boost the discount rate also has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.

Feb 19 · 11:05:00 PM · Source: CNN Money
email · face · Twitter · digg · COMMENTS
by Michael Oliveto

Enter your comment below and click Submit:

Copyright © 2010 MarketBeast.com.
All rights reserved.