This Just In!

It will be interesting to see how the markets respond. Since this is a “widely expected” move, it shouldn’t have much effect. However, the January Consumer Price Index will also be announced tomorrow, so it could be difficult to separate the impact of the two events.

The Wall Street Journal

The U.S. Federal Reserve Thursday raised the rate it charges banks for emergency loans by a quarter percentage point, but emphasized that the step didn't represent a broader tightening of credit.

In a widely expected move, the U.S. central bank said the increase in the discount rate to 75 basis points from half a point was part of the Fed's steps away from its emergency-lending efforts. The increase will be effective from Friday.

"Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities," the Fed said in a statement.

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