News Alert: Rate Increase

February 19, 2010
Matt Isleib

 

The Fed announced today it is raising the discount rate. This is the rate that they charge on emergency or overnight loans to banks. The discount rate has been at .50 percent since December 2008 and is being raised .25 percent to .75 percent.

This is the first sign the Fed is attempting to take the training wheels off the financial markets. It has been the main backbone of our financial system amidst the financial crisis and has been the backdrop for the economy and financial markets.

You can read the official  Federal Reserve Press Release

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