Thursday, February 18, 2010

Fed hikes discount rate

The Federal Reserve Board on Thursday announced that in light of continued improvement in financial market conditions it had unanimously approved several modifications to the terms of its discount window lending programs.

Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities. The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy, which remains about as it was at the January meeting of the Federal Open Market Committee (FOMC). At that meeting, the Committee left its target range for the federal funds rate at 0 to 1/4 percent and said it anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Bernanke is now pretending he's a hawk!

Equities are selling off because of the strength of the dollar.


Anonymous said...

did we just get screwed by the Fed? thought we could break back to Jan highs but this news was surprising?

Anonymous said...

Surprising ? the fed has a big auction next week ,they just want you t buy some toxic T bonds ...let the flight to quality begin