(wire)
Fed raises discount rate to 0.75 percent
The Federal Reserve said it will raise the interest rate it charges banks for emergency loans in order to improve financial market conditions.
The rate will be increased from 0.50 percent to 0.75 percent, effective today.
In a statement, the Fed said, "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. They noted that the modifications are not expected to lead to tighter financial conditions for households and businesses and the move does not signal any change in the outlook for the economy or for monetary policy.
The rate will be increased from 0.50 percent to 0.75 percent, effective today.
In a statement, the Fed said, "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. They noted that the modifications are not expected to lead to tighter financial conditions for households and businesses and the move does not signal any change in the outlook for the economy or for monetary policy.
