News / Finance
Federal Reserve Cuts Discount Rate to 5.75%
The Federal Reserve has cut the discount rate for loans from 6.25% to 5.75%, a move that faces many economic risks. The discount rate is the rate charged only to qualified banks.
Stocks have shot up on Wall Street. S&P futures, which were down sharply early in the morning are now up 22 points. Foreign currencies are reaping the benefit as well. Brazil's real has jumped to the highest point in five years.
According to the Federal Reserve's website, "These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially."
