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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Steve168 who wrote (17506)8/10/2004 8:33:19 AM
From: Elroy Jetson  Respond to of 110194
 
Watch the Fed "Discount Rate" for your model.

The Fed raised both the "Fed Funds Rate" and the "Discount Rate" by 0.25% on June 31. There is no reason to assume they will always move both rates in tandem.

An increase in the "Discount Rate" means cheaper money, even if they raise the mythical "Fed Funds Rate".