Friday, February 19, 2010
Fed Increases Discount Rate
In a surprise move that is hopefully indicative of a broader change in policy, the Fed increased the discount rate to 0.75% yesterday (from 0.5%). This came rather out of the blue; usually the Fed gives a better "heads up" before this sort of thing. The Federal funds rate remains the same at effectively 0%, so for all practical intents and purposes zero-interest rate policy remains in effect.