The Fed implemented a cut in the discount rate to control the current financial market crisis in August 17. More or less since the same days many central banks started to inject large amounts of funds to ensure liquidity of markets. On August 21, it lowered the fee to borrow Treasury securities, yet another measure to ease constraints in the marketplace
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In-Depth Analysis
- ECB and Fed: Managing Expectations by FX Solutions
- Wakeup Call on Forex Markets - USD Offered on Rate Expectations by Saxo Bank
- Daily Global Commentary - Tracking the Success of the Discount Rate Cut by Northern Trust
- Equity And Index Trading Strategies - Markets are up on FED's on rate cut expectations by Saxo Bank
- Daily Trading Strategy - FED hawkish? by MVDForex
- U.S: Credit Crunch to Crash UK Housing Market 2007-08 by Marketoracle.co.uk
- Morning Report - US officials seek to reassure on risk by Westpac Institutional Bank
Related News
- US Fed Discount Window Borrowings $2.3 Bln As Of Wed (Dow Jones)
- Banks hike borrowing from Fed (Thomson Financial News)
- Scouring Thursday's Fed Data For Discount-Rate Borrowing (Dow Jones)
- US Fed adds 17.25 bln usd liquidity to markets in three operations UPDATE (Thomson Financial News)
- US Fed adds 3.25 bln usd to markets in 3rd injection, day's total 17.25 bln usd (Thomson Financial News)
- US Fed adds 7 bln usd to markets in second move, daily total 14 bln usd UPDATE (Thomson Financial New)
Analysts Comments
- Tony Crescenzi, analyst at Miller Tabak:
"The Fed is effectively 'sterilizing' this discount window lending by its announced intention to cut its Treasury bill purchases a total of 10 bln usd this week and next. If the Fed were to lend 10 bln usd and not sterilize it.The funds rate would fall, reflecting the new liquidity." - Thomson Financial News - Krishna Ramaswamy, analyst at Thomson IFR Markets:
"The excess supply should help alleviate some of the recent stress in the bill market.There should continue to be plenty of supply over the coming weeks,' he said, 'and it would be expected that rates cheapen from here." - Thomson Financial News
