·
The Federal Reserve
lowered the Federal Funds Target Rate more than expected to 1.25%, the
lowest it's been since July 1961. The Board also lowered the discount
rate 50 basis points to 0.75%· The press release, which accompanied the Fed’s action, contained the following statement. "... incoming economic data have tended to confirm that greater uncertainty, in part attributable to heightened geopolitical risks, is currently inhibiting spending, production, and employment. Inflation and inflation expectations remain well contained."
· The complete text of the Fed's latest press release can be viewed here.
· On October 31, the Fed issued revised rules for the usage of the discount window. The revision "should eliminate the incentive for institutions to borrow for the purpose of exploiting the positive spread of money market rates over the discount rate." To view the Fed's press release on these changes, click here.