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To: shove_it

Inflation isn’t why the Fed raised the discount rate.

The Fed has signaled that they’re going to withdraw the easy credit and liquidity measures put in place to “rescue” the banking sector. The discount rate raise means that the Fed wants to transition back to being the lender of last resort, rather than being the lender of first resort.


2 posted on 02/22/2010 7:37:48 AM PST by NVDave
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To: NVDave

They apparently confused the discount rate with the reserve rate.


10 posted on 02/22/2010 11:43:52 AM PST by CharlesWayneCT
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