Why Fed Increased Discount-Rate?

Posted in CFA by qmarks on February 19, 2010

The Fed yesterday raised the rate charged to banks for direct loans by a quarter-point to 0.75 percent. That is the first increase since June 2006. The Federal Reserve’s decision to raise its discount rate shows that the global recovery is on track and other central banks can afford to keep withdrawing emergency measures. In my opinion FED saw some recovery signals which we have not realized yet.

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