Monday, March 17, 2008
Fed cuts discount rate by 0.25%
The U.S. Federal Reserve on Sunday announced emergency measures to stem a fast-spreading global financial crisis, tapping tools last used in the Great Depression to pour funds into cash-starved Wall Street firms. The Fed cut the discount rate it charges on direct loans to banks to 3.25 percent from 3.50 percent and set up a new program to provide cash to a wider range of big financial firms previously unable to borrow directly from the central bank. I doubt this move will work.