Fed hikes discount rate, says not tightening

[Roland99]

Source: MarketWatch

The Federal Reserve announced late Thursday that it was raising its discount rate in order to push banks to borrow from the private market for short-term credit. In a statement, the Fed said it would raise its discount, or primary credit rate, to 0.75% from 0.50% effective on Friday. Fed chairman Ben Bernanke signaled last week that the Fed was mulling the move. Fed watchers had expected the move to come at the next Fed meeting in March. Today's action shows a sense of urgency on the part of the Fed officials. The Fed said the move is intended to "normalize" their operations as the financial crisis winds down. The change is not a tightening and does not signal any change in monetary policy, the Fed said.

Read more: http://www.marketwatch.com/story/fed-hikes-discount-rate-says-not-tightening-2010-02-18?dist=afterbell

[Newsjock]

1. 'but insisted borrowing costs for consumers or companies would not rise'

From Reuters:
http://finance.yahoo.com/news/Fed-raises-discount-rate-to-rb-1185528021.html?x=0&sec=topStories&pos=main&asset=&ccode=

The Federal Reserve said on Thursday it was raising the interest rate it charges banks for emergency loans, its first rate move since December 2008, but insisted borrowing costs for consumers or companies would not rise.

Yeah, right. Banksters won't even tolerate a 25 basis point increase without passing along every penny -- and probably more -- to us.

[CreekDog]

2. Fool

he'll have us keep 10% unemployment but by golly, we'll keep inflation at .001%. :wtf:

[lib2DaBone]

3. Oh Great. Economy stumbles.. Fed raises rates....

Economy Stumbles as Jobless claims up and Inflation up... Gasoline going up...http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4273769

China pissed over Dali Lama and Hillary giving ultimatums over Iran.... beating war drums.

Call me crazy.. but is this a good idea to piss off China and they quit buying our debt?

Yes, China stands to lose as well.. but all our factories and manufacturing are tied up in China.. we make nothing in the US any longer.. who would be hurt more?

[golfguru]

4. Whaaaaat? Is the economy growing already?

For me, it is not growing until jobs start growing.

[harun]

8. All the people who decide to raise rates or not have jobs.

[Zoeisright]

5. Good God.

Of COURSE banksters are going to raise rates. That's what they DO! They're a bunch of fricking thieves and have never, EVER, EVER absorbed any cost themselves. EVER.

[Roland99]

6. Just wait until after next month when the Fed stops bolstering the real estate market

[bain_sidhe]

7. Well, I heard the publicans were getting worried

that the economy was improving too much for them to cash in on the hard times in the mid-terms. But I'm sure this has nothing to do with that.

[TheWatcher]

9. The Only thing they would be cashing in on is Wall Street's artificial gains, and a successful

Propaganda Campaign that has brainwashed much of the Public to believing there is some sort of Recovery going on.

Other than that, nothing has fundamentally changed in the REAL Economy, except of course for the perception of a Recovery that doesn't exist.