nothing much
the Fed's discount window is rarely used because the Fed Funds market is cheaper. Or is cheaper until a bank's financials get so shaky that other banks won't lend to it in the Fed Funds market.
Hopefully, we're far from that condition in the banking industry.
:-)
2007-08-23 02:35:07
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answer #1
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answered by Spock (rhp) 7
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Not much, that's the rate that's generally used for short term money. The fed is just using that as a way to put more liquidity in the market. It doesn't have a direct affect, but that, along with the actual 71 billion or so that the Fed directly put in the market will affect stocks.
It just won't affect the average person's rates on anything, we don't borrow money from the overnight window at the Federal Reserve.
2007-08-23 10:30:07
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answer #2
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answered by matzael 3
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Nothing. The discount rate is used to improve liquidity (the amount of cash available for lending), not the retail mortgage rates. Sorry to dash your hopes! :-)
2007-08-29 03:41:58
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answer #3
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answered by Genki 3
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Nothing. It will help the banks recoup some ot their losses.
2007-08-23 09:41:55
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answer #4
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answered by ? 4
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