Posted by
Defend America on Thursday, February 18, 2010 5:27:51 PM
Fed bumps up rate banks pay for emergency loans
Fed raises rate banks pay for emergency loans; won't directly affect consumer borrowing costs
Jeannine Aversa, AP Economics Writer, On Thursday February 18, 2010, 5:08 pm
WASHINGTON (AP) -- The Federal Reserve
decided Thursday to boost the rate banks pay for emergency loans. The
action is part of a broader move to pull back the extraordinary aid it
provided to fight the worst financial and economic crisis since the
1930s.
The
move won't directly affect borrowing costs for millions of Americans.
But with the worst of the financial crisis over, it brings the Fed's
main crisis lending program closer to normal.
The Fed decided to
bump up the so-called "discount" lending rate by one-quarter point to
0.75 percent. The increase takes effect Friday.
http://finance.yahoo.com/news/Fed-bumps-up-rate-banks-pay-apf-4141548450.html?x=0&.v=3