B
Black Swan
what gives guys? It's like they let Hank Paulson back in the Treasury for 5 minutes..
Dollar! huge moves, why so late in the day?
- Thread starter Black Swan
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B
Black Swan
answers own question...sneaky ba5tards...
The U.S. Federal Reserve Thursday raised the rate it charges banks for emergency loans by a quarter percentage point, but emphasized that the step didn't represent a broader tightening of credit. In a widely expected move, the U.S. central bank said the increase in the discount rate to 75 basis points from half a point was part of its step away from its emergency-lending efforts. The increase will be effective from Friday.
"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 Fed said in a statement.
http://online.wsj.com/article/SB10001424052748703315004575073810416822660.html?mod=googlenews_wsj
The U.S. Federal Reserve Thursday raised the rate it charges banks for emergency loans by a quarter percentage point, but emphasized that the step didn't represent a broader tightening of credit. In a widely expected move, the U.S. central bank said the increase in the discount rate to 75 basis points from half a point was part of its step away from its emergency-lending efforts. The increase will be effective from Friday.
"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 Fed said in a statement.
http://online.wsj.com/article/SB10001424052748703315004575073810416822660.html?mod=googlenews_wsj
B
Black Swan
Did the discount rate hike leak?
"Sure, the Federal Reserve made it very clear on Wednesday that while it would soon be raising its discount rate, this should NOT be taken as an indication that policy was being tightened. But we’re pretty sure that’s exactly how it will be taken, what with markets being markets…The discount rate, of course, is the rate charged to banks visiting the discount window seeking emergency funding. Traditionally it stands about 100bps north of the widely followed Fed Funds rate, but was chopped to 0.5 per cent during the crisis as part of the bail-out.
The penalty usually associated with banks using this Fed facility is now being gradually restored. Thursday’s move increased the rate to 0.75 per cent. January’s Fed minutes, released on Wednesday, stated:
Participants generally agreed that such steps to return the Federal Reserve’s liquidity provision to a normal footing would be technical adjustments to reflect the notable diminution of the market strains that had made the creation of new liquidity facilities and expansion of existing facilities necessary and emphasized that such steps would not indicate a change in the Committee’s assessment of the appropriate stance of monetary policy or the proper time to begin moving to a less accommodative policy stance.
Note that Treasury yields at the longer end were on the march earlier on Thursday – seemingly a reaction to (well anticipated) news that some $126bn of US government debt will be auctioned next week."
http://ftalphaville.ft.com/blog/2010/02/18/153641/did-the-discount-discount-rate-hike-leak/
"Sure, the Federal Reserve made it very clear on Wednesday that while it would soon be raising its discount rate, this should NOT be taken as an indication that policy was being tightened. But we’re pretty sure that’s exactly how it will be taken, what with markets being markets…The discount rate, of course, is the rate charged to banks visiting the discount window seeking emergency funding. Traditionally it stands about 100bps north of the widely followed Fed Funds rate, but was chopped to 0.5 per cent during the crisis as part of the bail-out.
The penalty usually associated with banks using this Fed facility is now being gradually restored. Thursday’s move increased the rate to 0.75 per cent. January’s Fed minutes, released on Wednesday, stated:
Participants generally agreed that such steps to return the Federal Reserve’s liquidity provision to a normal footing would be technical adjustments to reflect the notable diminution of the market strains that had made the creation of new liquidity facilities and expansion of existing facilities necessary and emphasized that such steps would not indicate a change in the Committee’s assessment of the appropriate stance of monetary policy or the proper time to begin moving to a less accommodative policy stance.
Note that Treasury yields at the longer end were on the march earlier on Thursday – seemingly a reaction to (well anticipated) news that some $126bn of US government debt will be auctioned next week."
http://ftalphaville.ft.com/blog/2010/02/18/153641/did-the-discount-discount-rate-hike-leak/
Masquerade
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B
Black Swan
Yeah, looks like everyone was expecting that
dunno mate, I'll bet those right at the top of the food chain made a coin...
Masquerade
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Not me, I was eating me dinner and stopped for the day early afternoon. No-one gave me the heads up.
montmorencyt2w
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Lovely comment under this article:
http://www.zerohedge.com/article/telegraphed-discount-rate-hike-goldmans-take
'"though of course we had no specific sense of timing on the discount rate hike."
There are tens of thousands of comedians out of work, Jan. Please stop stealing their best lines.'
http://www.zerohedge.com/article/telegraphed-discount-rate-hike-goldmans-take
'"though of course we had no specific sense of timing on the discount rate hike."
There are tens of thousands of comedians out of work, Jan. Please stop stealing their best lines.'
