Thursday, February 18, 2010

FEDERAL RESERVE BOARD RAISES DISCOUNT RATE

The Federal Reserve raised the discount rate by 0.25 to 0.75. This is the lending rate the Fed uses when it makes emergency over night loans to banks. The market has taken the move in stride, in fact, the market has garnered strength from the move and continues to move higher using the increase as a vote of confidence in the economic recovery.