Sunday, February 21, 2010

The Fed.

On February 18, 2010, the Federal Reserve raised the discount rate (the interest rate for emergency loans for banks) from 0.5% to 0.75%. Some people panicked when they heard this because they thought this meant the Fed would raise other interests that would affect the average consumer. However, the Fed said that is not in their game plan. Some say raising the discount interest rate was a good sign because it means that economy is winding down somewhat and the US is recovering from the worst of the recession.


http://money.cnn.com/2010/02/19/markets/sunday_lookahead/

http://www.cnbc.com/id/35465481

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