Fed just raised rates yesterday; same day as “unexpectedly” high jobless claims were made again. We are already at the end of our financial rope — so much so that they are raising rates in the worst recession since the Great Depression.
Bad, bad, bad situation. I’m scared.
I am too. Not terrified, I know I can survive but I think we’re in for tough times.
They raised the rate on discount window borrowings. This is much different then raising the fed funds rate, and returns the spread between the discount window and the fed funds rate to the normal 0.50% that has been in place for as long as I can remember. The 0.25% spread we saw the last year or so was simply a reaction to the crisis.