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Fed Hikes Discount Rate, Says Not Tightening
Oh boy, and inflation begins…. WASHINGTON (MarketWatch) — The Federal Reserve announced late Thursday that it was raising its discount rate in order to push banks to borrow from the private market for short-term credit. In a statement, the Fed said it would raise its discount, or primary credit rate, to 0.75% from 0.50% effective on Friday. Fed chairman Ben Bernanke signaled last week that the Fed was mulling the move. Fed watchers had expected the move to come at the next Fed meeting in March. Today’s action shows a sense of urgency on the part of the Fed officials. The Fed said the move is intended to “normalize” their operations as the financial crisis winds down. The change is not a tightening and does not signal any change in monetary policy, the Fed said. source: MarketWatch Tags: discount rate, inflation | Category: Interest Rates, The Fed | |
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Tommy (NMLS #220122) is an active loan officer with AmCap Mortgage. You can also find Tommy on Twitter laying down the law in mortgages and other things that makes the wheels turn. |
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