Friday, August 17, 2007

Fed Cuts Discount Rate

The Fed cut the discount rate by half a point to 5.75%, declaring "downside risks" to the economy have increased. Ya think?

However, the central bank did not change its target for the federal funds rate, which has remained at 5.25 percent for over a year. Fox news reports, "Many strategists believes the market won't settle down until the Fed lowers the fed funds rate — the rate banks charge each other on overnight loans. The discount rate only covers loans the Fed makes to banks."

Whatcha think Benny?

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