Friday, August 17, 2007

Helicopter Ben to the Rescue

I actually have no idea if a rate cut is a good idea, that's above my my grade, but Helicopter Ben just cut the discount rate to 5.75. The discount rate is the rate at which the Fed is willing to make overnight loans to member banks. The more widely discussed federal funds rate is an announced target for the rate at which banks will lend to each other through their Fed accounts.