Monetary Policy

Fed Cuts Discount Rate 

Amid some rumors late yesterday that an emergency FOMC meeting was being held to discuss an inter-meeting cut to the Federeal Funds target rate, the Federal Reserve cut the discount rate this morning to 5.75 percent: The Federal Reserve, declaring that increased economic uncertainty poses risks for U.S. business growth, announced Friday that it has approved a half-percentage point cut in its discount rate on loans to banks.