This extract from CNN report puts rate Emergency Funds rate move into perspective. Note their view that it is largely 'symbolic'
NEW YORK (Fortune) -- The Federal Reserve raised the rate it charges banks that borrow from the central bank when they run short of funds.
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.
full article here:
http://money.cnn.com/2010/02/18/news/economy/discount.rate.fortune/index.html article here:
daytrades feb 19 pre-market, page-36
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