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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (23643)	1/4/2001 6:35:21 PM
From: Dwayne Hines	Respond to of 25711

Fed just cut rate again (tonite)- perhaps we will have an active Friday for once: Fed Cuts Discount Rate a Quarter Point WASHINGTON (Reuters) - The Federal Reserve on Thursday cut a largely symbolic borrowing rate, adding to Wednesday's shock move to cut U.S. interest rates that was designed to prop up the flagging economy. The powerful central bank cut the discount rate, which it charges on Fed loans to commercial banks, by a quarter percentage point to 5.5 percent. In a statement, it said the Fed's board of governors had voted on the cut unanimously at the request of all 12 regional Fed banks. The central bank -- which moves the discount rate only at the request of regional Fed banks -- had said on Wednesday it was prepared to take this additional action if the regional banks requested it do so. In a statement issued that day, when the Fed cut its fed funds rate half a point to 6 percent and lowered the discount rate to 5.75 percent, the central bank had said it stood ``ready to approve a further reduction of 25 basis points in the discount rate to 5.5 percent'' if regional Fed banks asked for such a move. Changes in the discount rate are decided by the board of governors, while moves in the fed funds rate are voted on by the FOMC, which usually meets eight times a year. Wednesday's fed funds rate cut came four weeks ahead of the next scheduled meeting on Jan. 30-31 -- a rare intermeeting move not taken since the autumn of 1998 when a globa